5 Mistakes To Avoid When Selling Your Business
When selling your business, business owners must be careful not to make several common mistakes. Below are 5 mistakes to avoid when selling your business. In most cases, business owners…
Start Planning for the Sale as Early as Possible
When a business owner decides to retire or to start a new business, the first thought they often have is, will it be possible to sell my business? While starting with the end in mind is often a smart move, preparing for a sale isn’t going to happen overnight. In fact, it could take up to two years from the thought of selling to the actual sale. If they’ve decided to sell the business, they will want to make sure they start planning right away, and this could mean finding the right help.
Get Help to Sell the Business
Many business owners who are interested in selling a business will want to make sure they have help from the very beginning. A business broker or mergers and acquisitions advisor is going to be able to help, whether they’re merging their business with an existing one as part of the sale, or if they’re selling it to another interested party. They can receive help determining the value of the business, creating a data room for organizing paperwork and financial statements, finding a buyer for the business, and creating proper marketing documents.
Determine the Selling Price of the Business and the Terms
When the business owner is ready to sell, the first step in determining how to sell a business is for them to consider how much they want to get for the business. Plus, in addition to determining the value of the business, they should think about how long they will train or consult, and the terms they’ll accept, as part of the sale. Many sellers think a buyer is just going to drop a bag of money on their doorstep and let them walk away? Think again. The terms and conditions to the sale are just as important as the headline sale price. What good is a high sales price if the seller never receives the money? Plus, the current owner might want to think about any conditions they might have for who can purchase it or who their ideal buyer might be? This will help them make sure they’re ready to start looking for the right buyer. This is something the mergers and acquisitions advisor can help them with to ensure the business is ready to be sold before a buyer is found.
Start Looking for a Buyer for the Business
The next thing an M&A advisor will do is look for a buyer for the business. This can be the most difficult part of trying to sell a business because they’ll want to make sure they find a buyer who is serious about taking over the business and who is going to be willing to pay the offered price or negotiate to a reasonable price for the business. If they have a mergers and acquisitions advisor helping them, the business owner can get the help they need to find the right buyer and complete the sale quickly, or, at all.
Frequently Asked Questions
We’re sure you have a ton of questions about the selling process. If you head over to our Frequently Asked Questions (FAQ) page, we’ll try to answer some of our most commonly asked questions for you. The answers to these questions might give you a better feel for the who, what, why’s, when’s, and how’s of selling your business. Click on the link above and check out those questions and answers, then contact us to start a no-obligation conversation.
For many business owners, the idea of selling a business can be daunting because it’s a long process and there’s a lot they need to do to ensure they’re prepared. If you’re ready to sell your business, make sure you talk to a mergers and acquisitions advisor today so you can start getting the help you need. They’ll help with every step to ensure your business is sold as quickly as possible, help you get the right terms, and as much money as possible for it. Call CGK Business Sales today or confidentially email us below to start the conversation.
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