Selling a Business - Planning Your Exit

sell-dice-white-100.jpgWe can provide assistance in formulating your business, growing your business and then we can work on an exit strategy to sell your business when you're ready.

IS NOW THE TIME TO SELL?

Most business owners never expect the exit from their company to be easy.  Many are surprised on how difficult it is to sell their business.  However, our firm believes that if you can plan for it, there's more opportunity for the business owner to maximize his or her opportunity on getting the highest price.

The market for selling a business has been slowly recovering.  The industry statistics are showing the number of closed business has risen to approximately 3% in 2010, as compared to first quarter 2009.  Although this does not appear to be a significant percentage, this percentage is continuing to put pressure on business owners to lower their prices.  Transactions that had revenue multiples of 7 percent in 2009 are now selling at multiples of 2 to 3 percent.  Additionally, the median business sold on Bizbuysell a popular site for small businesses was down from $165,000 to $150,000, from 2009 to 2010.

Marketing & Packaging your Business:  Our firm will assimilate your financial data and package it in a very informative and friendly manner for the user or buyer of your business.  Our management sales staff is adept with business opportunity sales and can assist you in every aspect applicable to the marketing and promotion your business.

Things that May Hinder the Sale of your Business:  Avoid these pitfalls!

a) Lack of preparation: This is one of the most common mistakes that business owners make. It's important to address every aspect of your business; similarly as you would if you were selling your home. Financial documentation, lease issues, franchise issues and staffing problems are just a few that will impact not only the stability, but will affect the command of your price in the business arena.  Business owners should prepare at least one to two years in advance.

b) Right Price: Pricing your business too high will only slow the process down.  Yes, you can come down, but sometimes there is a very short window of interest, and timing is of the essence.  On the other hand, a business priced too low gives the indication to a potential buyer that there is a fire sale at hand or that something may be wrong with it’s operations.

c) Remember you are still running a business: You cannot loose sight that you have to continue running your business, while dealing with brokers that are trying to get your business sold. There is nothing worse then trying to sell a business, your watching the slow run down on the same business, because the business owner is being distracted with the sale of the company and not paying attention to the company’s sales or cash flow.

d) Prepare a package simulating how to move forward successfully: May want to put some of your clients on a contract, so there on board for a while. A buyer will feel much more confident at moving forward with your clients signed on.

Call us for a Consolation at 561-792-7700