Are you ready to sell your business? Perhaps you're facing health issues and can no longer run a business. Maybe you're ready to retire. Or perhaps you want to sell your current company so you can move on to your next venture. Whatever you're reason, it's important that you implement a strategy to find the right buyer and get maximum value.
Selling a business isn't as simple as hanging a "for sale" sign in the window. There may not be large market for your type of business. The right buyer may not have the funds to meet your price, or they may disagree with you on the value of the business. These types of transactions can often take months or even years to complete, so it's helpful to start as soon as possible. If you're trying to sell your business quickly, the challenge may be even more difficult. Below are a few tips to help you find the right buyer in a short amount of time:
Get a professional valuation. Nothing turns away potential buyers like an inflated asking price. You may have a valuation in mind, and you likely believe your estimate is accurate because of how well you know your business. However, it's possible that you may be too close to the business. Many business owners make the mistake of believing that their intangible assets, like customer relationships or product designs, are worth more than buyers are likely to pay for them. As a result, they set the asking price too high.
Instead, get a professional valuation. These are often conducted by accountants, business brokers, or other experienced professionals. They can objectively analyze your company and help you determine what a buyer is likely to pay for your business. You can then set a price that will attract buyers and help you sell your business quickly.
Proactively reach out to potential buyers. You probably already know your most likely potential buyers. Chances are high that your buyer will come from within your own industry, as they already have a working knowledge of the products and services. For example, you may sell to a vendor or even an employee. You could sell to a competitor who is looking to expand. Perhaps a customer would like to bring your services in-house and would consider buying the company. Don't be afraid to reach out to these potential buyers to gauge their interest.
Be creative with financing. In an ideal world, your buyer would pay cash for your company. However, that may not be feasible. Instead, be prepared to accept payment in a number of different ways. You might accept partial ownership in the new business. You could participate in profits for years into the future and receive an annual dividend. You could finance the purchase yourself and allow the new owners to make monthly payments to you. There are a broad range of potential payment methods and the final transaction could include a mix of several different types.
Ready to sell your business? Contact a business broker today. They can help you find the right price and buyer for your company.