Hiring a business broker Orange County is the first step to selling a business fast and for the right price. There are, however, several things you will have to do in order to speed up the sale. In this post we shall be taking a look at the crucial things you have to do to sell your business fast and for maximum profit.
Set a fair asking price
One of the things that keep businesses on the market for long is wrong pricing. An asking price that is too high will scare off buyers while a price that is too low will leave buyers wondering why. Buyers will always perform their own valuation to determine if the price is fair. If their valuation doesn’t match with yours you might lose their trust. Working with experienced business brokers Orange County will ensure that you set an accurate asking price that not only lures buyers in but also helps you sell for maximum profit.
Choose a buyer carefully
The wrong choice of a buyer will also make it hard for you to sell your business. There are basically three types of buyers: individual, strategic and private equity groups. Individual buyers tend to move the quickest whereas strategic buyers tend to take the longest to buy a business. The type of your business and your reason for selling is what will determine the kind of buyer you end up working with.
Make your business more desirable
How desirable a business is will also determine how fast it sells. Buyers will perform due diligence to determine if your business is a suitable investment. The less flaws a business has the easier it is to sell it. You should also restructure your business by ensuring you have the right type of employees, you remove yourself from operations and document all your systems and processes. Doing so will guarantee you sell fast and for the best possible price.
Offer financing or some form of security
Last but not least you should consider offering buyers some sort of security. This ranges from offering to remain on until the buyer is able to run the business to offering seller financing. An experienced business broker Orange County will help identify the best incentive to win buyers over.
These four tips will definitely help you sell fast and for the best price. Your biggest task is finding the right business brokers Orange County to help with the sale.
How fast you sell a business depends on a number of things including the competence of your business broker San Diego. On average it takes about 6 to 11 months to sell. But why does it take this long? In this post we will be taking a look at how long each step of the sale normally takes.
The decision to sell a business is one business owners make years before they list it. The best advice you can get from business brokers San Diego is to come up with an exit strategy years in advance. By doing this you will be able to keep prepping your business for sale and know exactly when to sell. You must also remember that buyers will want to see your records for the last three years. The primary job of a business broker on the first day is to ensure your business is ready to sell and you are selling for the right reasons.
30 to 45 days: Preparing a marketing package
This involves the preparation of a marketing package. The business broker will help you compile the critical documents needed for the sale. It is also in this stage that you and your business broker will decide on who to market to and how to communicate to buyers so that your business is considered an exciting opportunity.
60 to 90 days: Finding and choosing buyers
It is after preparing the marketing package that the business broker San Diego will start marketing your business. This is done using blind ads. This stage involves finding and prequalifying buyers as well as obtaining offers.
45 to 90 days: Due diligence and loan approval
Due diligence and loan approval takes between 45 and 90 days. The business broker helps negotiate the best terms for due diligence. The time this stage takes depends on the financing required as well as the type of buyer you are working with.
15 to 30 days: Schedule closing
After due diligence, if the buyer still wants to purchase the business the business broker San Diego will go ahead and schedule closing. This happens after the lender, if any, has received the required documents.
30 to 90 days: Consultation and training
The final stage after closing is to train the new owner. Offering to stay on after sale is an incentive that helps win over buyers and speeds up the sale. Training and consultation normally takes 30 to 90 days. Your business broker can help negotiate better terms.
All things considered, when everything goes perfectly, it takes about 180 to 330 days to sell a business. The competence and strategy used by your business brokers San Diego is, however, what determines how fast you sell.