Consider these primary factors such as timing, true verifiable market value, tax implications and etc, before meeting with potential buyers and talking facts, figures, terms and conditions for selling your business.
2. Selling Your Business
Primary Steps to Selling Your Business
Planning of selling your business?
When you decide selling your business, consider these primary factors such as timing, true verifiable
market value, tax implications and etc, before meeting with potential buyers and talking facts, figures,
terms and conditions.
The Realistic Value:
Most of small businesses keep profits to a minimum in order to reduce taxes. It means financial
statements are not likely to return the accurate earning capability of your business and, in turn, its real
value. It's a wise move, at the very beginning of the sales process, to seek an independent appraisal of
your business from a professional business appraiser, or suitably qualified business broker, to avoid the
costly and frustrating mistake of selling at below market value.
Essential Information:
Potential buyers rely deeply on the information you give them and see the characteristic of such
information as a key sign of how well the business has been managed. At a minimum they'll need to see
accurately organized and reliable financial statements and records. They will also like to see projected
budgets for the next 3-5 years, backed-up and verified by reliable sources of research and considered
analysis.
The Best Recommendation
Generally businesses rarely sell for a lump sum, up-front payment of cash. Instead, terms such as “seller
finance” are ordinary and can have complex tax and legal implications. It's a best suggestion to get
timely, proficient advice before starting the sales process and to tap into this regularly during the course
of the sale - particularly prior to key decision stages as you progress.
Timing is Imperative:
Selling Your Business |
Do not wait until it's too late to start the selling process. Choosing a time to start which is right for you
and your upcoming plans even as also being appropriate and prudent in the prevailing market
conditions will give you the required time to attract the right buyer. Keep in mind, it can take up to a
year to sell a business.
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3. Phantom Procedure:
There is no common calculation like one multiple, or one ratio, or one method that suits every kind or
size of business. Be wary of so-called 'rules of thumb'. These can shoot you up a creek with no canoe, let
alone the paddles! Be mindful that your business is truly unique and as such requires a tailored review
and in-depth, personalized analysis to determine its real market value. You will also require
understanding the viewpoint and motives of potential buyers and the price they are willing to pay.
Negotiate Bids
Whilst negotiating the sale with only one potential purchaser may simplify the process, generating
attention and offers from the some prospects knocking at your door, will definitely drive up the final
selling price and present you with a range of alternative deal structures to consider. Prospective buyers
in the market will often be identifiable from the beginning. Take time to ensure these pre-selected
prospects are contacted early on.
Understanding Buyers
Every prospective buyer will tend to be focused more on differing purposes in your business like, future
cash flow streams, growth potential, ROI (return on investment) and synergy. Aware of these key factors
now, will allow you to provide information customized to every individual buyer's needs and their
particular area of interest. So at your first meeting quickly identify what is important to them
particularly.
The Support Team
Selling the business you founded and grown over many years can be an emotional and complicated
method, fraught with disappointments and littered with legal potholes. It will be in your best interests to
engage a properly qualified professional team of experts to represent you in all areas and at all stages of
the sales process. Business brokers help to find out potential buyers and selling your business.
Considering Offers Selling Your Business | [Pick the date]
As the seller, you will be considering purchase offers from every angle, ranging from personal views such
as a requirement for your continued involvement in the business, to financial options such as payment
structures and ongoing financial involvement. In the final analysis, the sale must be well suited to you
and your personal plans for the future.
Every seller of a business justifiably wants the sales process to be completed, signed, sealed and
delivered as soon as possible. Selling a business is one of the main financial transactions anyone can
ever undertake in their lifetime, so make entirely sure the whole process from scratch to end is
professionally conducted, meticulously monitored and thoroughly documented, even if it means the
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4. sale takes a little longer to complete. Your patience will be well rewarded. Consult business broker for
documentation task, legal work and up to end process of selling your business.
Aberdeen Advisors Inc, have expertise in the sale and purchase of manufacturing, medical, distribution,
healthcare, technology and service businesses. Check it out the list of business for sale in Tampa and buy
a business in Florida, call (727) 369-8204 or visit: http://www.aberdeenadvisors.com.
Selling Your Business |
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