Finding a business broker San Diego is not hard. You will get dozens of hits with a simple Google search. Hiring a competent business broker, however, takes work. It is for this reason that we have taken the time to discuss a number of points you should know about before hiring.
Experience selling your type of business
When hiring business brokers San Diego most people only focus on the experience that the broker has. While this is important, you should note that real estate agents who double as business brokers will also share information on their experience. The best way to ask this question is to ask the broker about the experience he has selling businesses like yours. Such a broker will already have contacts of buyers who might be interested in your type of business and will also be more efficient in business valuation, pricing and confidentiality management.
Business brokers get paid on commission. This means you will not have to pay them until they sell your business. All in all, it is good to note that some brokers may ask for down payment. The down payment should not be too much. The commission charged should also be fair. Always remember that the commission is the percentage of the total selling price that you will have to pay the broker. For example, if his commission is 10% and you sell your business for a million dollar you will have to pay him $100,000. Always take the time to negotiate the commission before signing any contract.
Valuation and pricing process
The business valuation process and pricing strategy of the business broker San Diego is also something you should check early. In business valuation the broker should be able to justify his valuation approach and give you the list of factors he considers before setting a selling price.
A common mistake most business owners make is that of not reading the business broker’s contract keenly. As a result some business owners end up locked in a contract with an incompetent business broker. Don’t be so distracted by the promises of the broker that you forget to read the contract. Always inquire about the contract length and conditions in which the contract can be terminated. You should also avoid committing to long term contracts. Start with a 90 days contract to gauge the competence of the broker.
Selling a business with the help of business brokers San Diego is the wisest thing to do. You, however, need to hire a broker that has the experience selling your type of business and one that you can trust. Don’t just hire for the sake of hiring.
Choosing a business broker Orange County to sell your business is not an easy task. It is up to you to find the most competent one. In this post we shall be discussing the main questions you should always ask when hiring a professional to help with the sale of your business.
What is your business valuation process?
Business valuation is so important in the sale of businesses that you must never overlook it. When you ask about the valuation process you need to take note of how the business brokers Orange County answers. Vague answers or generic approaches are red flags and you should simply walk away. Several factors are considered when pricing a business. Know why your broker recommends a certain approach over the others.
How do you protect confidentiality?
The more people know about the sale the harder it will be for you to sell your business. You should ask the broker about their policies when it comes to maintaining confidentiality. When information about the sale leaks you may end up losing employees, customers, lenders and other important people. Competitors may also exploit the opportunity to gain a competitive advantage. The sale of your business must be kept a secret at all costs.
Do you have experience selling businesses like mine?
Hiring an experienced business broker Orange County is important but does he have any experience selling businesses that are similar to yours? If the answer is no then it is not a good idea to work with him. A broker that has experience selling businesses that are similar to yours will also have qualified buyers for your business already in his contacts. He will also be able to prescreen buyers better.
What is your pricing strategy?
Relying on a business valuation alone to determine a selling price is not good. There are so many other factors that affect the price of a business. A good business broker will know how to develop realistic pricing plans in order to attract more buyers and also create deal tension that maximizes the sale price. Knowing how a broker prices a business will help gauge the ability of the broker to help you land a great deal.
These four questions are very important when hiring business brokers Orange County. The key, however, is to hire someone you can trust. Don’t simply hire because the broker has been in the business for years. Hire him because you believe he has the experience and resources needed to help sell your business.
When it is time to sell your business you need to find an experienced business broker San Diego to take over the sale. The main role of the broker will be guiding you throughout the process so that you don’t make mistakes that cause the sale to not go through. Other than that, there are a couple of other things you will have to do in order to speed up the sale and sell for maximum profit.
Know the worth of your business
Long before you list your business it is imperative that you know exactly how much it is worth. This is important because it will help you know the perfect selling price and how much money you will be able to get at the end of the sale. Business brokers San Diego can help with business valuation. It is, however, important that you question their approach in business valuation. Know why they have selected a certain approach in business valuation and what the cons are.
Get the business ready early
Selling a business takes time. How much work you put in to make the business more valuable will determine how fast you sell and for how much. This is why you have to spend more time getting the business ready. It is highly recommended to start getting your business ready for sale at least three years in advance. During this time you need to fix your business’ flaws and explore new opportunities. The idea is to make the business as profitable as possible. Needless to say, planning your exit is something you should do as soon as you setup your business. Don’t wait until you can no longer run the business to start drafting your exit plan.
Sell when business is good
The mistake most business owners make is that of only considering selling when their business is on a downward trend. This ends up causing them to sell at a loss. If you want to sell for maximum profit it is imperative that you sell when your business is doing really well. This is the time when you have a high chance of selling for maximum profit.
Know the tax implications
You will certainly have to pay taxes. Understanding the tax implication will help you plan accordingly. Talk to your business broker San Diego, accountant and financial advisor about the tax impact of selling your company. You should do this on an annual basis.
Keep the business up and running
Even after listing your business it is imperative that you keep it running optimally. Relaxing will cause its performance to go down and its value will go down too.
While bringing in a business broker Orange County is important, knowing how much your business is really worth is crucial to the sale. It is only with the information on how much your business is worth that you will be able to set the right selling price and sell for maximum profit. The best news is that you don’t have to hire an appraiser for your valuation needs. Most business brokers today offer business valuation services. In this post we will be looking at the different approaches used to value a business.
Balance sheet value
A common approach used by business brokers Orange County is the balance sheet valuation method. This includes adjusted book value, liquidation value and book value. The adjusted book value is determined by revising the asset’s book value so that it reflects the cost if would take to replace the assets in the present business’ condition. This method requires that the total values be offset against the sum of liabilities.
With book value, figures from the company’s financial records will be considered a depreciated at the time of sale. This method poses some issues to the seller more so if you depreciated the assets too much to get tax advantages.
Liquidation value is the total amount that would be realized if the business assets were sold. The value here is lower because it doesn’t account for the company’s intrinsic value.
With this approach, your business broker Orange County will consider the level of earnings that your company has using the capitalization rate, discount rate or multiplier. There are many income approach methods used here. Each method requires a level of earnings as well as conversion factor in order to translate the earnings into the business value.
Here the approach sets the value based on the values of other businesses similar to yours that were sold. To set the market value the business broker must research the sale prices of similar businesses in the region. The challenge here is that finding a business that is completely similar to yours can be hard.
When performing a business valuation it is always good to question your business brokers Orange County on the approach they are using. Understand the pros and cons of each approach and how they affect the deal structure as well as the multiples. Most business brokers combine all these approaches so as to come up with a more accurate business valuation.
Not all business owners consider the option of working with a business broker San Diego when selling their business. They believe since they built the business from the ground up they can easily sell it. What they fail to understand is that selling a business is not the same as running a business. A lot of work is involved. Handling the business sale and running the business can be overwhelming. This is not to forget about the emotions that get in the way. If you want to sell fast and for the best price, you will need to bring in a reliable team. In this post we shall be looking at the top professionals you should bring onboard before you list your business.
Business brokers San Diego are without doubt the first professionals you should hire. This is for the simple fact that business brokers have sold many businesses before and understand the process better than you. What is more is that they have the time and resources needed to handle the sale on your behalf while guaranteeing the best results. The best thing about working with business brokers is that they know what buyers are looking for and will be able to prep your business in a way that lures more buyers in.
Yes working with a business broker is an added expense but the expense will be worth it. Brokers get paid on commission and you don’t pay them until the sale is concluded. You, however, need to read through their contract to ensure you are not getting into something you will regret later. You also want to hire a broker that has experience selling businesses that are similar to yours.
Transaction lawyers will help with due diligence and prepare and negotiate the asset purchase agreemet or the stock purchase agreement and all ancillary documents like promissory notes, bills of sale, secretary and officer certificates, resolutions and meeting minutes of shareholders, directors, managers and members. The main role of a transaction attorney is to help with the legal side of things during the sale. Hire an experienced attorney.
Accountants and financial consultants
You will also need to hire financial consultants and accountants before you initiate the sale. These professionals will be invaluable when structuring the deal and when thinking about tax consequences. They will also help with business valuation.
These professionals are a must have. The best thing is that most business brokers San Diego work with transaction attorneys, accountants and financial consultants in-house. This means you have a single point of reference. You, however, need to make sure that the brokerage you are hiring from has these professionals else you will have to juggle multiple firms throughout the sale.
The first recommendation your business broker Orange County will make when you hire him is to spend a little more time getting your business ready for sale. Yes selling the business as it is will work but taking time to prepare it will help sell fast and for maximum profit. Your business broker will perform a business valuation which reveals the strengths and weaknesses that your business has. Some of the most common areas you need to fix before listing your business include the following.
Questionable or excessive tax deductions
Even where the tax deductions are legitimate, they will lower the earnings of your business. Buyers will want to know why you have too many deductions and you will need to have a good explanation for them. Scaling back on the tax deductions is one of the best things you can do when getting your business ready for sale. Your business brokers Orange County will be happy to help with this.
Pending or threatening litigations
One thing you will notice about serious buyers is that they are not interested in acquiring your baggage. This is more so when it comes to debts and legal issues. Buyers want a business that they can acquire and start running smoothly without issues getting in the way. When getting ready to sell you should consider resolving matters that can be resolved. Remember that you will be required to disclose any prior litigation to the buyers. The more litigation you can take off the table the better off you will be when selling your business.
Organize your books and records
You will not be able to evade the due diligence stage when selling your business. This is why you need to start preparing for this stage early enough. To do this you will need to gather all relevant business books and records; clean them up and organize them in a way that will win the trust of buyers. A business broker Orange County knows what buyers will be considering when evaluating your business. He will help organize your books and records the right way.
To make your business more attractive to buyers you should consider hiring the right people in the right jobs and being paid the right amounts. If you don’t plan on sticking around after the sale you need to ensure that the business can still operate smoothly in your absence. This means hiring or training a management team to take over your duties.
It is not possible to fix everything when getting your business ready for sale. However, the more issues you fix the better.
If you are ready to sell your company you need to hire a dependable business broker San Diego. The main duty of the broker is to offer guidance during the sale and ensure that you get the best deal at the end of the day. You can either hire a broker to take over the sale or on a supervisory capacity. But how exactly do you make sure that your company sells successfully? In this post we will be discussing the most important things you need to do as the business owner.
Start getting it ready early
It takes a minimum of 8 months to sell a business after listing it. How fast you sell will mostly depend on the work you have put in to make your business more attractive. With the help of business brokers San Diego, you can learn of the strengths and flaws that your business has. A business valuation will reveal this. You then need to use this information to fix the fixable flaws and invest more on your strengths. Your business broker will know what buyers will be looking for in your type of business. You can use this information to make your business more attractive. Getting ready for sale is something you should start doing at least 3 years in advance.
Hire a broker that has sold your type of business
Hiring an experienced business broker is a good thing but for the best support and guidance you need a broker that has experience selling your type of business. That way you will be guaranteed he knows how to reach out to the right buyers, how to market extensively and how to get you the best deal during negotiations. For example, a broker that focuses on businesses worth millions will not give you the best support if your business is only worth a few thousand dollars.
Keep making it better during the sale
The worst mistake you can make when selling your business is taking a break from running it. Your business broker San Diego will take over the sale so that you can focus on the core operations of your business. Your job during the sale should be making your business better. You don’t want buyers to feel like your business is abandoned. Show them that it is up and running.
Last but not least you should try and offer some form of financing. This is the key to selling a business even faster. Seller financing can cut the sale time by half. Business brokers San Diego can help identify the best financing options you can offer. They can also help buyers secure other forms of financing.
As a side note, when selling your business you must be willing to compromise. You will not get exactly what you set out to get. Your business broker will help you know when the best deal is on the table.
Are you getting ready to hire a business broker Orange County? The first thing you need to understand is that not every broker out there has what it takes to sell your business. Some are in it just for the money. Considering you want to sell fast and for maximum profit you need to spend a little more time vetting a business broker. In this post we shall be looking at crucial considerations you need to make before hiring a broker.
Experience selling your type of business
Experience selling businesses is very important. It is only by working with an experienced broker that you will be guaranteed he understands the ins and outs of selling a business. The important question to ask is this; does he have experience selling businesses that are similar to mine? Just because business brokers Orange County have lots of experience does not mean they will give you the support and guidance you need. To be guaranteed of getting this you need to find a broker that has experience selling businesses that are similar to yours.
Size of the team
As much as the business broker plays the biggest role in the sale of a business there are a number of other professionals you will have to bring in. The last thing you want is to have to work with multiple firms to sell your business. To avoid this issue you need a brokerage firm that offers the team you need under one roof. The professionals you need to make sure a brokerage firm has access to transaction attorneys, financial advisors, accountants and qualified business brokers.
Don’t take their word for it; listen to what recent clients are saying about a business broker Orange County. You should ask for the contacts of the business broker’s most recent clients. Listen to what the clients have to say. Know what they were satisfied and dissatisfied with when working with the business broker. Needless to say, too many negative reviews are a red flag.
How a business broker will market your business matters. Never hire a broker without first sitting down with him to understand how he will give your business maximum exposure. The right broker should not just market in your county but nationwide. He should also have a sizeable database of potential buyers in his contacts.
Last but not least you should consider the service fees. How much will he charge for the service? Will there be an upfront fee? How big of a commission will you have to pay?
The idea is to never hire a business broker without first doing a thorough background check. The more you know about him the better. Always follow your gut.
Hiring a business broker San Diego is not a walk in the park. There are so many brokerage firms out there and not all of them have what it takes to sell your business. You will be amazed by the sheer number of real estate agents who double as business brokers. With this in mind, you have to be very careful who you hire to sell your business. In this post we shall be looking at the key qualities you should look for.
Experienced selling businesses like yours
The mistake most business owners make when hiring business brokers San Diego is hiring a broker simply for the number of years he has been in business. While this is not bad, not every experience is good. For example, if yours is a multimillion dollar business and the broker only focuses on selling small businesses worth a few thousand dollars then the support you get from him will not be sufficient. He will be overwhelmed. This is why the broker you hire must have experience with your type of business, in your industry and in your region.
Offers a wide range of services
The last thing you want is to keep juggling professionals from multiple companies when selling your business. This happens when the business broker you hire doesn’t offer the comprehensive services you need. The right brokerage firm will have access to a team of experienced business brokers, transaction attorneys, accountants and even financial advisors. The firm must also offer a wide range of services to meet all your needs.
Just because you pay the business broker San Diego when you finally sell doesn’t mean you don’t consider the service cost. Most brokers are paid on commission. This is a percentage of the total selling price. Always take time to negotiate the commission as it will bite into your profits once you sell. Avoid brokers who ask for a huge upfront fee.
Has a good reputation in the industry
You must never ignore the reputation of the business broker. Read as many reviews about the brokerage firm as you can. Too many negative reviews are a red flag. Get to know what people are most proud of and most disappointed with when working with your target business broker.
Uses multiple marketing channels
Last but not least, the best business brokers San Diego use multiple marketing channels. Avoid a broker that only relies on a handful listing sites. The right broker uses multiple marketing channels and markets your business nationwide and not just in San Diego.
Hiring a business broker in San Diego is not something you should rush. Take your time to learn more about the broker before committing.
When it is time to sell your business or make a decision on selling you need to bring in an experienced business broker Orange County. The main duty of a business broker is to manage the process so that you sell on time, sell at the right price and don’t make mistakes. The broker has experience selling businesses that are similar to yours and will be able to help you close fast and for the best price. Some of the key benefits you can expect to get from working with a business broker include the following.
The hardest part when selling a business is maintaining confidentiality. You want as few people as possible to learn about the sale. The problem is when selling on your own buyers will always associate you with your business. Keeping the sale a secret will be difficult. This is where business brokers Orange County come in. They are not linked in any way with your business and use tested strategies to maintain confidentiality. For example your broker will prescreen buyers, require them to sign an NDA and disclose information about your business sparingly.
Valuate your business
Business valuation is important. It is what enables you to know how much your business is worth. It also gives you the information you need to set the most accurate asking price. Business brokers will perform a business valuation for you not only by using textbook calculations but also relying on research and considering other factors. The broker will also present several recommendations that help increase the value of your business significantly.
Recast financial statements
Business owners usually prepare financial statements for tax purposes. These statements will not cut it when selling a business. A business broker Orange County will recast your financial statements to present the real profitability and earning power of your business. Recasting considers your expenses to determine non-essentials or unnecessary business or personal expenses that are paid for by the business. The objective is to maximize financial presentation and make the business more attractive to buyers from a financial perspective.
Negotiate for sale
Business brokers are master negotiators. They have dealt with all manner of business buyers before and they know what buyers are looking for and what they think. Business brokers are thus able to put together a more desirable financial package with maximized return. What is more is that is that the broker will manage the negotiation process so that emotions don’t get in the way.
The advantages of working with business brokers are innumerable. You just need to find a broker that has a proven track record of successfully selling businesses like yours.