Business Sales - Getting the Best Outcome

 

The business sales process may seem like a challenging undertaking for someone who is not familiar with it but with the aid of the right networks and the right individuals to assist you, it becomes a valuable business adventure.   And a clear understanding of the processes and expectations can assure the seller of a smooth transaction from marketing, contract signing and finally transfer of ownership.  Here are a few things you need to know.

·         The proper appraisal of your business is crucial –Your accountant and a business/financial adviser are the people you will need to sort this out.  The assessment or your net worth is not just about figures.  Financial statements communicate more than that. You need to understand the connotations of your liabilities, assets, cash in bank (…etc.) and what they mean to a buyer.  This can be your starting point to determine your selling price. 

·         What a business broker does.  Business sales don’t usually happen without a business broker but it is possible.  It is ultimately the seller’s choice but working with a business broker provides great advantage.     This is most especially true if you sign up with one who is experienced and is backed by a company that  give certain business sales guarantees. However, you have to be cautious of business brokers who want extended exclusive contracts in exchange for the guarantees.  Open and honest communication is important.   Make sure that you agree on all fees, charges and commissions before moving forward.  And do not be lured by lower rates as it does not necessarily mean a better outcome.

·         Prepping your business for the market.  Preparing your business may take time specifically for small businesses.  It is very much similar to selling real estate.  In this part of the business sales process, your business broker will be able to recommend what is best. Their business sales experience is an advantage that you can access to reach your goals.  Conditional to the current state of your business, preparing your business may take about a year or so. 

·          Promotion and Business Presentation. Here is where you wait and hope that what you have been doing for the past months is not in vain.  This is the phase where the business broker does the job you actually hired him for.  It involves the marketing - online posting, inclusion to existing seller database, cold calling, and making use of other advertising mediums.  Interested buyers are then asked to sign a confidentiality agreement and your business is the presented to a set of the pre-screened buyers.

·         Proposals and Negotiations - At this stage, you are presented with offers to buy and it’s time to make choices.  After you have made your choice, you go through final negotiations where there may be a few changes in terms of contract. . The business sales process is then concluded with the final drawing of necessary documents, fund transfers and the official hand-over of business ownership.