Category Archives:Sell My Business
Tips to Help Find the Best Business Broker in 2019
When you want to sell a business the first thing you need to do is hire a dependable business broker San Diego. The right broker will help make the most informed choices throughout the sale and also ensure that you sell at maximum profit. All in all, it is good to note that not every broker out there has your best interest at heart. Some just lack the experience and resources to sell your business. With that in mind, what should you do to find the right broker?
Get referrals
The first thing you need to do is talk to people who have sold their businesses recently. You can also get referrals from trusted sources such as your lawyers, accountant and industry association. These professionals will give you names to some of the best business brokers San Diego. When you contact a broker, always ask for references and make sure you contact at least three references. Were they happy with the work done?
Check with the IBBA
The International Business Brokers Association (IBBA) is a nonprofit trade association of business brokers. The association provides education, professional designations, conferences as well as networking opportunities. There are more than 1000 business intermediaries across the globe. The IBBA will help find the best brokers in your area.
Due diligence
Just because a business broker San Diego comes highly recommended or is associated with IBBA doesn’t mean you should blindly trust him. You have to do your own background check. Start by looking at the background, experience and credentials of the business broker. Check if the broker has any lawsuit or complaint against him too. The Better Business Bureau will be of great help when investigating a business broker. Too many negative reviews are a red flag.
No large upfront fee
Another very important thing you should look at is the fees the business broker charges. You should stay away from any brokerage firm that charges a huge upfront fee. The commission should also be acceptable.
Avoid being pressured
The worst thing you can do when searching for the best business brokers San Diego is allowing yourself to be pressured. You don’t want to make a rush decision. The sale of a business is a huge decision that involves a lot of processes. You need the right professional by your side in order to sell fast and for the best price. Never allow a business broker to force you into committing with him.
There are many more considerations you should make when hiring a broker. These ones will, however, get you started on the right foot. The rule of thumb is not to hire a broker for the sake of hiring but to hire one because you have complete confidence in him.
How to Get the Best Price for Your Business When Selling
Hiring the best business broker Orange County is obviously the first thing you need to do when getting ready to sell a business. The broker will be your guide throughout the process. For you to sell fast and get the best price for your business there are a couple of things you will have to do.
Sell at the right time
In real estate, location is everything but in the sale of a business timing is everything. The best time to sell is when your business is doing really well. Don’t wait until it starts stagnating or failing to sell it. It will be much easier to sell and get the best price when your business is doing very well. Business brokers Orange County will also consider the current market and let you know if it is the best time to sell or not.
Be clear on what you want to sell
A business valuation needs to be performed before you list your business. This will help understand the market value of your business. The next thing you have to do is determine what you want to sell. Do you want to sell the whole business or part of it? This is information you need to give to your business broker upfront. It is also good to remember that selling a business also includes such assets as trademarks, goodwill, client lists and physical assets. If yours is an incorporated business, you have to decide if you want to go with an asset sale or share sale.
Get your house in order
One of the key duties of a business broker Orange County is to help you get your business ready for sale. Prior to listing the business, you have to make sure that everything is in tip-top shape. This will pay off significantly. You need to gather the financial records for the last three years and clean them up. Your business records need to be up to date in order for you to win the trust of potential buyers. Now is also the best time to reduce liabilities in order to get the best price.
Get your team ready
A business broker is not the only professional you will need. You also need to hire a transaction attorney, financial advisor and accountants. These professionals will work with your business broker to guarantee you sell at the best price.
Selling a business is not easy. You have to make sure that you take the time to do everything right. Proper preparation is very important. The good news is that the right business broker Orange County will help with that.
Business Broker Orange County - Why Do Business Owners Sell a Successful Business?
When it is time to sell your business, the first thing you need to do is hire a business broker Orange County. The broker will guide you through the sale process and ensure you get the best deal. But why would you want to sell a successful business? Needless to say, the best time to sell a business is when it is doing really well. That is when you can sell fast and get a good profit. In addition to that, here are the top reasons why business owners choose to sell their successful businesses.
Lack skills and energy to grow further
One of the main reasons why business owners choose to sell their successful businesses is when they feel they lack the energy, time, experience, skills and other resources to take the business to the next level. A business needs to grow continuously. There will, however, come a time when you feel that achieving any growth is impossible. When you feel this way, now is the best time to contact experienced business brokers Orange County. You need to entrust your business to a new owner who has the skills and resources to take it further.
Been offered a better opportunity
For most small business owners, they choose to sell when a better deal is put on the table. The risk of a business failing is pretty high. Most entrepreneurs choose to sell when they get the chance. They then use that money to start a bigger business. When you receive an offer that is too good to turn down, you should consider it keenly.
Need cash for another venture
Selling is also considered when money is needed to fund another venture. In this case a business owner can choose to sell the entire business or part of it to raise the money he needs.
Part of the exit strategy
With most experienced business owners, selling was always their part of their exit strategy. They sell when their business has attained a certain milestone. To most owners, selling is considered after achieving a certain growth level or after achieving long-term financial security
Need more time for personal life
At some point in time, a business owner may realize that the business takes up a lot of their time. When the time comes when you need to spend more time with family or your personal life, selling might be considered. The funds from the sale can be used to finance a side-hustle.
Want to retire
The main reason why business owners contact business brokers Orange County is because they are ready to retire. You cannot run your business forever. When you feel you no longer have the energy to run it, you can pass it on to a successor or simply sell it.
The reasons for selling are many. The above are just the main reasons. Always refrain from selling on your own. You need to work with an experienced broker to help with the sale.
Business Broker San Diego - Reasons that Force Business Owners to Sell
It is common for business owners to hire a business broker San Diego to help sell a business they have built from the ground up. Although there is a time when selling is the best thing to do, there are certain situations that force business owners to sell. Some of the main reasons business owners are forced to sell their business include the following.
Lack the energy, skills or resources to run the business
Running a business is not easy. It takes up a lot of time, energy, resources and requires special skills. One of the reasons business owners choose to sell their business is when they no longer have the energy, skills, time and resources to run their business. Business brokers San Diego will help get your business ready and ensure that you sell at maximum profit.
Lack of alignment
Some business owners sell because they got into business for the wrong reasons. In this case, they feel uninterested in running the business. It is easy to experience exhaustion and burnout when you are not interested in your business. If you can’t find a solution for the burnout, the next step forward is to sell the business.
Business doesn’t have the capital to survive
Small businesses are very illiquid and risky. If you don’t have adequate capital you will never experience the full potential of your small company. If you don’t have the capital to run or grow your business, selling will be a great idea. You need to sell now while the value of your business is still high.
Feel physically and mentally exhausted
As the owner of the business you are most likely the main decision maker. This can be draining both physically and mentally. If running the business takes a toll on you, it might be the best time to sell. Don’t wait until you get sick before you decide to sell. If you are feeling exhausted, you should speak to a business broker San Diego now to review your options.
Business partner wants to sell
If your business partners want out, you will have to sell even if you don’t want to sell. This is more so if you don’t have the money to buy out their shares and be the sole business owner. In most cases, when business partners want out, selling and starting anew is the best option since you will both get an equal share of the sale.
There are many more reasons why you may be forced to sell. Reasons worth mentioning include your business industry is failing, you need money to pay your debts and you have to relocate. Experienced business brokers San Diego will guide you through the process and ensure you sell at the right time and for maximum profit.
Signs it is Time to Sell Your Business
An experienced business broker San Diego can help you know when it is time to sell. This is important because the mistake most business owners make is that of holding on to their businesses for too long. The last thing you want is to sell because you are being forced to sell. You want to sell when you are ready. In this post we will be looking at the 4 signs that tell you it is time to sell.
Health issues
If you no longer enjoy running the business, now might be the best time for you to sell it. There are so many reasons why you may no longer enjoy running the business and one of them is dealing with health issues. If you feel the business is taking too much of a toll on you, then now might be the best time to contact business brokers San Diego to help with the sale.
Business has outgrown your skill set
This is one of the main reasons why business owners choose to sell. As your business grows the startup problems will fade and will be replaced by small problems which are less fun and challenging. As the business continues to grow, you may start to feel overwhelmed. This is the point where most business owners start hiring professionals to help run their businesses. But as you become less of an asset to your company you will start to feel bored. If you are no longer able to learn and grow with the company, the only logical thing to do is to sell it.
The industry is moving against you
Some factors are out of your control. This is more so when it comes to market changes. If there are megatrends on the horizon that threaten your business, you should start thinking about an exit. Every business gets affected by the current technological trajectory and government sanctions. When this happens you need to sell before the changes hit your business. The window of action is short.
You have a new lucrative opportunity
Exit plans can be borne out of positive causes. Some business owners sell because more lucrative opportunities have presented themselves. You can sell to raise money for the new lucrative opportunity. You only need to weigh your options keenly and make sure the new opportunity is worth considering. The good news is that your business broker San Diego will help make an informed choice.
There are so many reasons why business owners choose to sell their businesses. The key is to make sure you are selling for the right reasons and you have adequate professional support to complete the sale.
3 Reasons for Selling Your Business
If you are considering selling your business, consulting a business broker Orange County can help demystify things. A broker has more experience selling businesses and is familiar with all the reasons why business owners choose to sell. What is more is that the broker will help you prepare for the sale and ensure you sell fast and for the right price. In most cases, there are three reasons why business owners choose to sell.
Business value
An important piece of advice business brokers Orange County will give you is if you have a chance to liquidate your business, you should consider the opportunity seriously. This is because running a business is risky. The longer you hold on to your business the bigger the risk gets. When you have the perfect opportunity to sell you should seriously consider it. Your broker will also let you know that there is value in business but no liquidity until you go through with a transaction of selling part or all of your business.
Tired of risk
In the early stages of setting up your business, you will be confident to take risks. This is mostly because you have more value in your business yet to lose. Taking chances is what helps your business grow. Needless to say, as your business grows so does its value. As the value increases, most owners become conservative fearing greater damage than when the business was small. It is also good to note that older business owners no longer have the luxury of time to spend years on any damage control. As a result they avoid risks. When you are tired of risks, now is the best time to plan an exit strategy. This is a smart decision to make.
Time for change
The third reason why most business owners sell is because they want to move on to something different. Although a chance at liquidity is a great reason to sell, this is not the only reason why business owners choose to sell. Some owners just want to move on to something completely different because they no longer have the resources and energy to keep running the business. At times, when the business exceeds your skills, you may just want to sell. This happens mostly when business owners no longer feel in control.
Reasons for selling are many. The most important thing to do is to hire a competent business broker Orange County to help with the sale. Hire from a firm that has a good reputation for successfully selling businesses that are in your industry.
What You Must Do When Selling a Business
Working with a business broker San Diego is the wisest thing you can do when contemplating the sale of a business. It is only with an experienced broker that you will be able to get the highest value for your intellectual property, real estate or sales. All in all, when getting ready to sell there are a couple of things you will have to do.
Hire a broker with experience selling your type of business
The first is to hire business brokers San Diego who have experience selling your type of business. Not every business brokerage firm out there will give you the support that you need. If you want the best support during the sale, you need to work with a professional who has sold businesses that are similar to yours. Take time to consider the number of businesses he has sold in the past year and check if he has ever worked in the industry your business is in.
Get a valuation report
You will also need to get a thorough business valuation. Most business brokerage firms offer business valuation services as a complimentary. This means you will not be charged a dime for the valuation. However, you need to make sure that the approach the valuation expert uses is foolproof. A good brokerage firm will not just rely on the textbook formulas but also consider the market climate before setting an asking price. A good valuation will help identify the strengths and weaknesses of your business. You can then put in the work to make your business more valuable.
Have realistic expectations
The worst mistake you can ever make when selling your business is to have farfetched expectations. Having unrealistic expectations is the top reason why most business owners pull out of the deal when selling their business. This is also the reason unrealistic asking prices are set which in turn scare potential buyers off. One of the duties of a business broker San Diego is to manage your expectation. Never assume anything when selling your business. Ask your broker for clarification.
Prepare for due diligence early
Last but not least, you have to start preparing for the due diligence stage early. This is the stage in which a potential buyer digs deeper into your business to determine if it is an ideal investment or not. Buyers will mostly want to go through your documents for the last three years. Make sure these documents are ready and well organized before you list your business.
The sale of a business is not something that should be rushed. It is also imperative that you get expert help from the start. Experienced business brokers San Diego will get the guesswork out of the way and ensure you sell at maximum profit.
Questions You Must Answer Before Selling a Business
Every business broker Orange County will ask you to think twice before selling your business. The reason for this is because selling is a huge undertaking and the results are not as instant as you would want. Business brokers also want to be sure that you are a serious seller so that you don’t end up wasting their time. Prior to listing your business, there are a few questions you will need to answer.
Is the business ready to sell?
The first thing business brokers Orange County will want to know is your reason for selling. You cannot wake up one morning, decide to sell and hire a business broker. Brokers are paid once the sale is concluded. If you are not a serious seller, you will end up wasting their time.
Still on whether your business is ready to sell, you need to remember that it can take up to 2 years to sell a business. What is more is that potential buyers will want to see at least three years of your tax returns and financial records. When you decide to sell, you must make sure you are selling for the right reason and that all the documents are ready.
How will buyers value your business?
Business valuation is done differently. It mostly depends on the nature of a business. The good news is that your business broker Orange County will determine the right valuation approach and give you advice on how to proceed. Brokers also know what buyers are looking for and will help you get ready for the sale.
Do you have the right team?
The first person you should add to your team is an experienced business broker. This has to be a broker who has experience selling businesses that are similar to yours. Second, you will need a transaction attorney, and a financial advisor. Always remember that the buyer will have a good team that will comb through your business. Make sure you have a better team.
Is now the right time to sell?
Don’t wait until your business is going under to think about selling it. The best time to sell is when your business is doing very well. At this time you will be able to demand a higher price for it. The market climate will also matter. If the interest rates are too high, selling now might not be the best idea unless you plan on offering seller financing.
Can the business thrive without you?
Buyers don’t want to buy a business that is over dependent on the owner. They want a business that will run on autopilot after the transfer of ownership. You need to remove yourself from the daily operations of the business and make sure your business has a great management team.
These are just some of the main questions you need to ask. Your business broker will ask more questions before he agrees to work for you.
Steps to Help Sell Your Small Business
Hiring a business broker Orange County is the first thing you need to do when getting ready to sell your business. An experienced broker will help get the business ready, market it extensively to the right buyers and guide you through the sale. Even so, when you want to sell a business there are a couple of things you will have to do on your part.
Determine reason for selling
Now is the time to define your reason for selling. Remember that some business brokers Orange County will not work for you if they feel your reason for selling is not good enough. The reason for this is because most buyers with bad reasons for selling end up pulling out of the deal. Needless to say, a broker is paid once the business is sold.
The main reasons why small business owners sell include the following:
- Partnership disputes
- Retirement
- Boredom
- Death or illness
- Becoming overworked
There are other business owners whose goal was to eventually sell their business for profit. The decision to sell in this case is arrived at when the profits of the business increase, the business achieves a consistent income figure, there is a strong customer base or the business gets a contract that spans several years.
Time the sale
Timing is everything when it comes to the sale of a business. You should start preparing for the sale at least two years in advance. That will give you ample time to improve your financial records, customer base and business structure. These improvements will eventually make your business more attractive to buyers and smooth the transition.
Get a valuation
Your business broker Orange County will help with the business valuation. The purpose of this is to help you know exactly how much your business is worth. The appraisal will also help set the best asking price. A business appraisal gives more credibility to the asking price that you set.
Get documents ready
The due diligence stage is unavoidable during the sale of a business. This is the stage in which the buyer tries to validate all the information you provided and also to gauge if yours is a worthy investment. In preparation for this stage, you need to gather all your financial records, clean them and make them more presentable. Now is also the best time to fix the fixable flaws in your business.
Find a buyer
It takes between 6 months and 2 years to sell a business. Considering how involving the process is, you should always leave the marketing part to experienced business brokers Orange County. Your broker will market the business extensively, prescreen buyers, help with negotiations and let you know when the best deal is on the table.
How to Get Maximum Profit When Selling Your Business
A successful business broker San Diego will help sell your business fast and at maximum profit. There are several strategies that brokers use to achieve these results. If you are looking to sell your business, here are a number of things you should consider doing in order to sell for more than your business is worth.
Get the timing right
In the real estate industry, location is everything. In the sale of business, timing is everything. The biggest mistake business owners make is that of not planning their exit strategy from day one. Waiting until a catastrophic event occurs will keep you from selling for profit. Business brokers San Diego know that the best time to sell a business for maximum profit is when it is doing well.
Ready your books
Potential buyers will want to go through your books to see if yours is a worthy investment. You have to gather your financial records for the last three years. Buyers want to know your numbers and not just your balance sheets, tax returns, profit and loss statements. They will also need to take a look at everything your business does including sales and marketing. Your business broker San Diego will help know which documents you need to ready.
Know what makes a business valuable
Simply getting a business valuation is not enough. You also need to know what makes a business valuable. There is a long list of things that buyers want to see in a business before investing in it. Two things that buyers don’t want to see are a business that is over dependent on the owner and a business with just a handful of customers. These are the two things you need to fix first. Buyers want to buy a business that can continue to thrive on autopilot after the transfer of ownership. If you are the only employee in the business, your business will not have much to sell.
Keep it quiet
The way to ruin the sale of a business is to tell people you are selling. If customers, vendors, employees and landlords learn about the sale, they might leave you. Needless to say, if they leave, the value of your business will take a hit. The sale has to be kept confidential. Working with business brokers San Diego will make it easier to keep the sale quiet because the brokers are not linked directly to your business and they know how to maintain confidentiality.