Hiring a business broker Orange County will help you eliminate most of the problems that can keep you from ever selling your business. This is because the broker has sold many businesses that are similar to yours and will be able to help you circumvent challenges and do everything possible to ensure you achieve the best results. It is also good to note that the interests of the broker are aligned with yours because the sooner he sells the sooner he gets paid and the more he sells your business for the more money he earns. Away from hiring a competent business broker, here are a few additional things you need to do to make your business more attractive to buyers.
Make it self-sufficient
The first piece of advice business brokers Orange County will give you is to take yourself from operations. Buyers are not interested in businesses that cannot run without the involvement of the owner. They want a business that can thrive under new management. The first thing you ought to do is make sure you hire the right team and train them to take over your business’ operations. Documenting all your systems and processes will further make it easier for a new owner to take over.
Diversify your customer base
Buyers are not interested in a business that relies on a handful of clients to succeed. They want one that has a diverse customer base so that if any of the customers leave the business will not fail. Following a business valuation a business broker Orange County can help identify opportunities that your business has and help you make use of them so as not just to diversify your customer base but also your products and services.
Offer some form of security
If you are interested in a super quick sale, you must be willing to offer business buyers some form of security. Offering seller financing is the best form of security you can offer. This is because it proves to the buyer that you have confidence in your business.
Set a fair selling price
The selling price you set will also have a part to play on how fast you sell. If the price is too high you will scare off potential buyers and if it is too low you risk selling at a loss.
Fix the flaws
Last but not least you have to fix as many of your business’ flaws as you can. Buyers are not interested in taking over a business that will be more of a burden to run. They want a business that will take off immediately. Fixing the problems that your business has will thus make it more attractive to buyers.
One of the reasons you need to hire a business broker San Diego when selling your business is so that he can help you with all the contracts that are involved. For starters, you have to double-check the details in every written document before you sign because most of the terms are legally binding. The primary job of a broker is to ensure you don’t make mistakes that end up haunting you for years.
With knowledge that most of the terms in the contract are legally binding, here are the key things you need to check. Always ask your business brokers San Diego to confirm that the terms are fair.
- Review your aims and check how well they have been met in the contract
- Ensure agreements made during negotiations are included in the final contract
- Ensure there are no vaguely worded exclusions, provisions or limitations in the contract. Vaguely worded terms will lead to problems later.
- Check how your obligations have been worded in the contract
- Make sure the necessary signatories and documentation are present before you sign.
- Check the schedule of tasks for completing the business sale, the handover, continuing the business and meeting all future obligations.
- Ensure you have all the copies of the negotiated agreements
Doing this will ensure there are no mistakes during or after the sale. It is also a good idea to have a transaction attorney present. The last thing you want is for terms to be misinterpreted and end up hurting you later on. In addition to the above, there are a number of things you have to make sure of after signing the contract.
- Everyone who had to sign has signed all relevant documents
- Your solicitor has the original documents that you need to keep
- The buyer’s solicitor has copies of the relevant documents
- Financial agreements are put into effect
- You deregister for VAT and the new owner registers for VAT. This is more so when it comes to asset and goodwill deals
- Inform employees about the sale with compliance with the law.
The sale of a business, regardless of how big or small it is must never be rushed. While your business broker San Diego will help with the paperwork, you too have a major part to play. This is more so when it comes to agreeing to the terms given by buyers. If you reject everything that a buyer wants to be done, for example, you might end up losing him.