These days, when it comes to selling your business it can be a complex endeavor, requiring multiple considerations. And in some cases, selling can require the hiring of professional business brokers and attorneys. A sale’s profitability depends on its reasoning and timing, as well as the structure and strength of the business. Successful sales are time-consuming even under the best of circumstances. Reviewing these considerations can help sellers build a solid business selling plan for successful negotiations.
Tip #1 Know the Reason for the Business Sale
When a business is for sale, potential buyers typically want to know why. You may decide on selling your business for these and other reasons:
- Ownership disputes
- Death or illness
- Lack of time and motivation
Some owners sell when the business isn’t profitable, but this often makes it harder to attract a buyer. Sellers should consider the company’s potential and readiness for sale as well as the timing of the deal.
Tip #2 Timing is Everything
Depending on the type of business and industry, sellers should prepare as early as is practical; this starts with a great well-thought-out business plan. The preparation phase, which can start a year or two ahead of time, can give the seller a chance to improve their corporate structure, financial records, and clientele to make the business profitable. Such improvements can make the transition easier for buyers while keeping the company running smoothly.
Tip #3 Understand Selling Alone vs. Hiring a Broker
Selling a business without help allows the owner to avoid paying commissions to a broker. It’s a great option when the business is sold to a current employee or family member; however, selling alone is not always the right choice. In some cases, a business broker can help a seller keep the business running and get the highest possible price during a merger or acquisition. Brokers can also help enhance any business plan to sell and increase selling options. Constant communication and realistic expectations are crucial during this part of the sale.
Tip #4 Finding the Right Buyer
Selling your business can take anywhere from six months to two years according to the Small Business Administration. It can be difficult to find the right buyer, but sellers can have an easier time by not limiting their advertising, staying in contact with potential buyers, and allowing room for negotiations.
Selling a business can be an emotional venture, but a professional broker can help ease burdens. When everything is finished, the profits and the increase in free time can make everything seem worthwhile.
If you need to sell a business, call Del Lingco International, Inc. today, at 713-783-5800. Our professionals are happy to assist and help you discover the options that are right for you.