Posted 11-10-2008 5:22 pm by
Are you trying to sell your business on your own? If so, there are several ways you can try to reach your potential buyers and get your business sold.
Are you trying to sell your business on your own? If so, there are several ways you can try to reach your potential buyers and get your business sold.
Advertising in the Newspaper
One of the first steps you can take to reach potential buyers is to simply place an ad in the newspaper. Look for a strong regional paper or a far-reaching paper such as the New York Times or the Wall Street Journal and place an ad in the "Business Opportunities" section. This way, anyone who is actively searching for a business to purchase will see your ad and may contact you.
Networking
Since friends, family members and business associates are all potential buyers, you could also look to your network of friends and associates in order to find a buyer. Start sending out feelers to those you know and see whether or not anyone seems to be interested in making a purchase.
The only problem with networking and with placing an ad in the paper is that it might make some of your customers and clients feel uneasy. When a company goes up for sale, customers and employees may be start to feel nervous about the future of the company and about its financial stability. Therefore, you should use caution if you choose to use either of these methods to look for a buyer.
Working with a Broker
Working with a broker is generally the best way to find potential buyers for your business. This is because a broker can work out a sale incognito by directly contacting investors, businesses and individuals that are likely to be interested in purchasing your business. Not only does this allow you to avoid getting undue publicity because of the sale, it also saves time and can potentially help you get a better deal on the sale.
Preparing a Selling Memorandum
Regardless of the method you use to reach potential buyers, you should prepare a selling memorandum to help you persuade someone to make a purchase. Your selling memorandum is very similar to a business plan, as it presents all of the important information about your business. Some of the information that should be included in your selling memorandum includes information about your:
Remember, the primary goal is to present your business in a positive way. At the same time, it needs to be presented in a professional and easy-to-read format. Therefore, you should start your selling memorandum with an executive summary that details the main selling points and explains why you want to sell the business. This summary should be followed up with sections describing the history of your business, its structure and operations and your asking price. You should also provide information about your physical assets, your historical and projected historically statements and any additional information that will help the buyer make a more informed decision.
If you hire a broker to help you sell your business, he or she should be able to help you create your selling memorandum. This way, you can make sure it is presented in a professional manner and that it includes all of the information that is necessary to make a sale. Keep in mind that your selling memorandum should not be misleading and that you should be upfront about any problems that your business is facing. Otherwise, you can get yourself in legal trouble and may be sued for fraud. With a well-prepared selling memorandum, on the other hand, you should have no problem finding someone to purchase a viable business.
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
