During pandemic times, many businesses are being forced to close. As selling your business may be the single most important financial decision you’ll ever make, getting the help and advice from Certified Business Broker Moche Hazout and the Transworld Business Brokers team can make a significant difference in how smoothly the sale goes and how much you walk away with at the end of the transaction.
There are many factors to keep in mind when valuing and selling a business, and having an experienced broker on your side can help guide you through the process for maximum profits. For example,if you have an e-commerce business, you are well aware of the value of a large audience, but when you sell your business, your profit is determined not only by the strength of the company and its overall value, but also by the timing of the sale and how and where your business is presented to prospective buyers – and this is a big part of where a great business broker comes in.
Here are some tips to consider when selling your business:
Think About Legalities
Legal issues should be at the forefront of your mind when selling a business; after all, selling a business entails the creation and execution of a complex and detailed legal agreement. There are many times in life when cutting corners is acceptable, but hiring a good lawyer or law firm is not one of them. Furthermore, any litigation, environmental issues, or other issues that could potentially derail a sale should be resolved ahead of time by strong legal representation.Having an experienced lawyer assist you with various aspects of the sales process is critical.
Deal with Serious Buyers Only
Working with an experienced and Certified Business Broker,such asMoche Hazout, is an essential part of the selling process, as these professionals will help weed out “window shoppers” and even potential buyers who just aren’t a good match for your company. Among other duties, a business broker makes sure that a Letter of Intent is submitted by any serious buyers and everyone agrees on the price and terms as well as the assets and liabilities that will be assumed.
Be Flexible on Price
There are a variety of reasons a business may sell for less than an owner originally valued it, things such as a lack of managerial depth, geographic distribution, or reliance on a small number of clients. For example, reliance on a small number of customers and/or clients can make potential buyers nervous, as it raises questions about your company’s stability. A seasoned broker can help you identify these potential issues, help you create responses to any buyer objections and even understand when it’s perhaps time to accept a lower price than you may have originally preferred.
Improving Your Chances for Success
There are other steps you can take ahead of time or even at the time of listing in order to position your business for sale and get the best price possible, and consulting with a seasoned business broker at any step of the way will help you be prepared and guide you to and through the best practices. For example, increasing your company’s visibility and profile both online and offline is always a smart move. Attend trade shows, improve your online profile by improving your social media game, and consider developing a cohesive public relations program to enhance your brand recognition and reputation.
Be Psychologically Prepared
Selling a business is a complicated process. You must be psychologically prepared for the potential time it may take to find the right buyer for your company. The truth is that most businesses sit on the shelf for a long time before being sold, but the right business broker can make sure that your business is best positioned for the right sale at the right time and at the best possible price.
Selling a business is a time-consuming and emotional process for many people. A compelling reason to sell or the presence of a “hot” market, as well as professional assistance, can help alleviate some of the burden. Preparation, patience, and good organization will greatly improve your chances of successfully selling your business at a fair price. So the sooner you start organizing your company and hiring experienced professionals, the better your chances of success.