Here are several tried and tested keys for owners contemplating selling their business:
Seek advice from a knowledgeable business broker about the value of your business.
Use a professional Business Broker to sell your business. Your business Broker should belong to a professional organization such as the IBBA (International Business Brokers Association and in Florida, Business Broker of Florida (BBF). These organizations have established professional ethics and rules for their members in addition to training for members to make certain they are knowledgeable, competent, and abide by the highest professional ethics.
Support your broker. Your broker can't help your business without your help. Your continued support during the buyer meetings, negotiations, and due diligence is absolutely crucial to closing the deal. A business owner selling their company needs to respond quickly to inquires, offers, and with paperwork because timing can make or break deals.
Allow adequate time to sell your business. Selling a business is significantly more difficult and complex transaction for both the seller and buyer. The amount of time your company remains on the market is impacted by a number of factors: the current market both nationally and in your state, the type of business or industry, and the size of your company. Yes some businesses sell quickly, however most business owners should anticipate up to six months and allow up to a year to finalize a sale.
Keep good records and have them prepared for your broker and prospective buyers. Good financial records and other business documentation can help expedite the buyer's due diligence process and increase the chances of a victorious and lucrative sale.
Run the company as usual or better. It is critical that your company maintains the level of operation as usual and continues to produce the financial results shown in the business profile during the selling process. If your performance declines, it will turn up during due diligence and either impact the deal closing or affect your selling price.
Remember, in most states business brokers are paid a "success fee." Meaning - there are no customary upfront fees, and the business broker is paid at the closing table when a transaction closes. Also, statistics consistently indicate that business owners that use a business broker received 10% to 20% more than those who sold their business themselves.
Why? Think about any negotiation. When a business owner is negotiating with a prospective buyer, and the buyer walks away from the negotiations, what happens to the business owner's negotiation position when they chase the buyer? Well, a broker can chase buyers while maintaining a level negotiating position for both parties.