Posted 11-10-2008 5:23 pm by
So, you think you might want to sell your business. But, you also want to make the most money from the sale as possible. The reality is that your timing will have a great deal to do with how much you are able to get from the sale of your business
So, you think you might want to sell your business. But, you also want to make the most money from the sale as possible. The reality is that your timing will have a great deal to do with how much you are able to get from the sael of your business. At the same time, you may be surprised by the many different factors that come into play when trying to determine the best timing for your sale.
Considering the Economy
Obviously, the state of the economy will play a role in how much you will be able to get for your business. When the economy is down, you can expect to get less money for your business than you would if the economy were strong. At the same time, experts frequently disagree on the state of the economy and where the economy is headed, therefore, you cannot base your decision entirely on the strength of the dollar.
Looking at Your Success
You will also get the most for your business if you sell it while your business is churning out a great profit, particularly if it looks as if you will having a good year the next year as well. Unfortunately, the entire process of selling a business can take well over a year. Therefore, timing it in such a manner that your business is at the peak of its production when it is sold can be difficult. Nonetheless, keeping an eye on market trends and selling when your product or service is at its hottest will help you get more cash from the sell.
Making it Attractive
If you were selling a home, you would take the time to make repairs and to make the house look more attractive to buyers, right? Well, the same is true when it comes to selling a business. You want to do whatever you can to make your business look as attractive as possible to potential buyers. In most cases, this process takes a year to accomplish. If you try to hurry up and spruce up the way your business looks, the purchaser will likely realize that you were trying to make the business look better just for the sake of the sale.
Keeping it Personal
Unfortunately, some business owners place their businesses on the market after personal or professional factors make it necessary to sell. Ideally, you should sell your business because you want to rather than because you feel as if you have to. Otherwise, you will feel pressured and anxious to take the first offer you get, which can mean losing out on a great deal of profit. Therefore, you should plan your sell well in advance and you should put yourself in the position where selling is not a necessity. This way, you will free to take the time it takes to negotiate a deal that is fair both you and the buyer.
Taking Leases Into Consideration
Finally, it is best to avoid selling a business right before major contracts or leases are set to expire. When determining the value of a business, buyers will take these things into consideration and will offer a lower price because the future of the contract or lease is uncertain. If you must sell right before a contract or lease expires, see about renegotiating the contract or lease before you start negotiations. This way, you can lock the buyer into a favorable rate and you can take away the uncertainty that might otherwise spoil a deal.
AARON MULLER| ADVANTAGE COMMERCIAL BROKERS
BUSINESS BROKER, COMMERCIAL PROPERTY SPECIALIST<
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DIRECT: 425.766.3940
FAX: 425.882.2547
CHECK OUT MY LISTINGS AT www.acbrokersinc.com
