When it comes to commercial business sales Live Oak Springs, it is always good for business owners to be realistic about the time required to exit their business. While it may take as little as 6 months to sell your business, you have to bear in mind that there are several factors that affect the sale. They include the business’ revenues, business category, cash flow multiples, location and the asking price. But how long, on average, does it take to sell a business? This post strives to answer this question.
After making the decision to sell, business owners exhibit a great sense of urgency to close. Some business owners expect the process to conclude within just 5 months. The truth is commercial business sales Live Oak Springs take time. Experienced business brokers in San Diego recommend that you set your expectations for days on market in the range of 6 to 11 months. While good timing and luck can lead to a fast closing, accelerating the sale is usually not possible. That is why you need to be ready for a lengthy process before you get your business listed.
The following steps will help you small business sell faster and for the right price:
- Make sure the business is ready for prospective buyers
To guarantee a smooth sale, you need to identify the ideal buyer. That way you will be able to know what to stress on when marketing your business. If you need a buyer who will purchase your assets, for example, you need to include a list of all your most valuable assets. For a buyer that will take over your business, you should include documents like cash flow statements, income statements, seller’s discretionary income and balance sheets.
The curb appeal also matters. Buyers base their first impression of your business on physical appearance. Simple improvements like repainting or landscaping can significantly improve the appearance of your business and attract more buyers.
- Work closely with a business broker
The worst mistake business owners make when considering commercial business sales Live Oak Springs is choosing to sell on their own. There are so many moving parts in the sale of a business. Buyers are also more interested in businesses that have been listed by reputable business brokers. Working with a business broker in San Diego will guarantee that you find the right buyer fast and close even faster.
- Set a great selling price
Buyers work with their own professional appraisers or business brokers to discuss the set selling price of a business. If their numbers and yours don’t match, you will end up losing their trust. Although setting a low price will compel more buyers to come knocking, you want to set a price that doesn’t rise red flags or cause you to sell at a loss.
How fast you sell will mostly depend on the type of business, the industry it serves and the business broker you are working with. If you don’t do any of the above recommendations, don’t fail to work with an experienced business broker.