Posted 01-10-2011 12:13 pm by
The time has come. You are ready to move forward with selling your business. But how and where do you start?
Most importantly, how on earth do you find a qualified buyer – one who will pay you what your business is truly worth? Selling your business is not a fly-by-night decision that has to be made – it is one that has to be well thought out, with a comprehensive action plan in place – much like the action plan you put together when starting your business.
To find a qualified buyer for your business, consider the following advice:
Develop a Marketing Plan. Don’t fret; it can be a simple one. Basically, your marketing plan should include a list of potential peers and/or other contacts who may either be interested in purchasing the business, or know someone who is. Within the plan, include a solid list of what media outlets, such as trade and consumer publications, you will use to announce the company is for sale. Also indicate within the plan if you will use a business broker, or sell the business yourself. Include all the steps you think you need to take to put the business-selling plan in place.
Get Involved. Consider joining local business and networking organizations that can assist you with notifying the business community your intent to sell. Many trade associations will offer free advertising to their members, so be sure to jump right on that boat. Members could be a key target for finding a potential buyer for your business.
Promote! Your business will not sell without what is known as a selling memorandum – essentially an executive summary that informs potential buyers about the strong elements of your business. Within the memorandum, include a list of products and services offered through your business, and an overview of your industry. Include all assets and financial information within this document, as well as future earnings projections. Last but not least, the memorandum should state why you are selling the business – a key piece of information any legit buyer will want to know! (Avoid negativity in this statement, if at all possible.)
Learn about the buyer market. There are many reasons why people buy businesses – whether as part of a strategy plan, financial motivation, or quick turnaround. Whatever the reason may be, make sure that you are strong enough to pitch your sale to keep in mind all target buyers.
Don’t forget your employees! An employee may serve as the best buyer of all! Not only may he or she be more willing to pay more than a financial buyer, but they also understand the key workings of the business, and risk is reduced. The downside may be that your employee may not have the funds to buy the business outright, but certainly don’t eliminate them, as you can secure third party financing.
Know that brokers can help. Selling a business is considerably more difficult than selling a home, as it has an abundance of more legal issues. A well qualified commercial real estate broker or business broker can assist you with the sale, by not only helping you avoid costly problems, but buy also leveraging their network to help you find a qualified buyer. A good broker can save you time, money, and give your business everything it needs to appeal to a buyer.
AARON MULLER| ADVANTAGE COMMERCIAL BROKERS
BUSINESS BROKER, COMMERCIAL PROPERTY SPECIALIST
DIRECT: 425.766.3940
FAX: 425.882.2547
CHECK OUT MY LISTINGS AT www.acbrokersinc.com
