Here are our Top 6 strategies to keep you on track to when selling your business:
1. Pricing the Business at the Fair Market Value
Although many sellers would like to see their business’s worth based on the time, effort and finances they have spent, you don’t want to go in and place price significantly above fair market value on a business. You must be to able to understand what buyers are looking for so that you can come to a win/win arrangement. If the price you’re looking for is significantly higher than what the fair market value is, chances are you will have a difficult time finding a buyer who’s willing to write a check.
2. Maintain Confidentiality
Any type of disclosure outside of the two parties involved can detonate the deal. It’s critical that all precautions are taken as to not disturb the running of the business operation. Employees can and will run if they feel they’re not working at a stable company. Therefore, make sure all correspondence stays away from the business. An experienced broker will maintain constant contact with both you and the buyer to make sure all questions are being answered and no breaches in confidentiality are made.
3. Never Sell Impulsively
It’s normal for a business owner to burn out and decide at the drop of a hat to find a buyer to take over the business immediately. However, do not
make a rash decision. An experienced broker will sit with you to make sure you plan ahead both carefully
and accordingly. An accelerated business sale can result in leaving a lot of money on the table.
4. Anticipate the Buyer’s
A buyer may to want appraisals of the property of the business, the machinery and equipment, inventory, and other assets. Due diligence and investigation takes time on the buyer’s end, so it is important to have your ends covered before the business goes to market.
5. Focus on the Structure of the Deal
Anyone selling a business in Charlotte will want all cash at closing, but that seldom happens without some sort of seller financing involved. In many business sales, the deal structure is more important than the price; therefore, make sure you are able to understand in advance what needs to be done.
6. Be Flexible on the Terms
You are not going to win every point of contention. It’s important to compromise when you need to, and save your battles for the most important issues in the deal. If you try to win every battle that arises, the buyer may walk away. You don’t want to come off as being inflexible. An experienced broker helps you understand in which areas you should show some willingness to step back and accept the buyer’s point.
Are you ready to find out the fair market value for your business?
For a personal, confidential valuation or to discuss how to sell your business in Charlotte, contact us.