Business brokers San Diego are the first people you need to contact prior to listing your business for sale. The reason for this is because selling a business is so specialized that even the best accountants and attorneys cannot be substitute for specialized and knowledgeable business brokers. There are so many people who set out to sell their business only to make a huge loss simply because they never covered every aspect of the sale. Hiring the right broker is the number one thing you need to do. Second, you need to get your business ready for the sale. Here is how you get ready.
Price it right
Setting the right price will not only help you avoid making a loss but also lure the right buyers. The price has to be realistic and based on solid proof. To get a realistic price, you have to start with a business valuation. This is a strategy done to determine how much your business is really worth. Your business broker San Diego will then use the valuation report and match it to the prevailing market trends to help set the best price. It is good to note that businesses that use third party business valuation professionals enjoy an 80% chance of selling at higher prices than those that don’t. Today, most brokers offer free valuation services.
Get your business in order
A business that looks nice sells fast. A business valuation will make you aware of your strengths and weaknesses. You should use that report to get your business in order. Remember that buyers will need a complete list of your equipment and inspect to make sure they are in good working order. If most of your equipment is not working, the buyer will use that to get a lower price. Business brokers San Diego know that buyers deduct a huge amount from the business that is less than its top shape. You need to fix as many problems as you can before listing your business.
Have a good reason to sell
Yes you can sell at your own convenience but it is always good to have a good reason to sell. Buyers want to see a logical reason as to why you are selling. If you don’t have the best reason to sell, buyers will think the worst and they will either run or offer extremely low prices. A business broker San Diego will let you know if your reason is good enough.
Form a team
Selling a business is not as straightforward. It is also not a DIY project. You need a whole team of professionals helping you. In addition to your business broker, you will need an attorney as well as an accountant. They will help prepare a package that is enticing to buyers. Your team will also help target the right prospects, help with confidentiality management, negotiate on your behalf and wrap up things quickly.
Selling a business is not something you should be in a hurry to do. In addition to doing your research, you have to spend a little more time hiring the right team.
Business Broker Orange County - Factors to Think About Prior to Hiring a Business Broker Orange County
Business broker Orange County gets paid on commission. That means they get paid a percentage of the total selling price. This is the main point most people know about working with business brokers. However, what most people fail to understand is that there are other factors that will determine your experience when working with a business broker. In this post, we will be focusing on the main factors you need to think about prior to hiring a broker.
Hiring experienced business brokers Orange County is crucial to the success of the sale. That is why you need to know how many years the broker you are considering has been in the business and how many businesses that are similar to yours that he has sold. You also need to know how many deals he closes each year. The right broker is the one who has been in the industry for years and one who has a proven track record. The number of businesses he has sold in the last year will help you know if he will help sell your business or not. Having 20 years of experience is not enough if the broker has not sold any business in the last year.
The broker you end up hiring should be properly licensed. Look up his license number and make sure it is valid. From there you need to know the local chambers, industry organizations and groups that the broker belongs to. Although licensing is important, you need to get more insight into the competence of the broker. You do so by considering his involvement in the business community as well as his level of expertise.
One thing you really want when working with a business broker Orange County is to make sure that he is well-connected in the industry he works in. Having no connections means the broker will struggle. He will not have the contacts of the important people you need to speed up the sale. The right broker should not only give back to the community but also have great connections to the best accountants, business valuation experts, attorneys, bankers and a range of other professionals. You may not understand the relevance of these connections now but when you list your business, you will appreciate having a well-connected business broker.
Your business broker should be open, honest and responsive to you. It is not uncommon to find brokers who are pushy. They don’t listen to the needs of their clients but rather force them into things. This is not someone you want by your side when selling a business. You want a broker who listens to you and always consults you prior to making major decisions.
Working with business brokers Orange County will smooth and speed up the process of selling a business. You must never be in a hurry to hire someone. Hire the broker who has a great track record and one that will help achieve your unique goals.