The timeline and details of selling a business vary significantly depending on the size, industry, and location of your business. However, the process of selling is fairly the same. The biggest impact on the sale process is usually your choice between selling with a business broker 92110 trusts and navigating the sale on your own. In this post, we will be looking at how to sell a business and the potential impact of choosing the business broker versus the DIY route.
Keeping the sale confidential is very important when selling a business. This is because if suppliers, lenders, employees, and customers hear about the sale, it can cause doubt about the ability of your business to serve their needs in the future. This will cause most of them to leave. Competitors may also try to poach your best employees and customers if they catch wind of the sale. Working with a business broker 92110 trusts is the best way to maintain confidentiality. This is because when selling on your own, you will be reaching out to prospects in person and that will send the message that you are selling your business. Even with NDAs in place, word will definitely get out when selling on your own. Business brokers have more experience with confidentiality management and will take every measure to ensure the sale remains confidential.
You cannot set a fair selling price if you have no idea how valuable your business is. An accurate valuation requires an objective assessment of the business and a profound understanding of the market. A business broker is involved in the sale of businesses on a daily basis and is in the best position to set a value for your business. When performing a business valuation on your own, you are most likely going to exaggerate the figures due to the emotional attachments you have to your business. To win the confidence of prospects, you need a business valuation that can hold up to the scrutiny of professionals.
Finding the right buyer requires that you market your business far and wide. As a novice, you will most likely focus on the standard marketing channels such as listing sites and reach out to potential buyers in person. A business broker will use premium marketing channels as well as reach out to potential buyers already in his database. The best thing is a broker will use blind ads so that confidentiality is maintained.
After finding the right buyer, a ‘Letter of Intent’ or an ‘Offer for Purchase’ will be presented. This outlines all the offer details including the payment terms, purchase price, training, and transition period. Negotiations will then follow and pave way for due diligence. Again, an experienced business broker in San Diego is in the best position to help with this stage. He will help you know when the best offer is on the table. The broker can also be the bearer of bad news when you want to decline an offer.