After developing your distribution business from the ground up to where it is now, it can be hard for you to let it go. The business is basically your baby. But the truth is you cannot continue running your business forever. There will come a time when you will have to either close it or sell it. If you plan on selling, leaving the sale to a business broker for distributors San Diego is the best decision you can make. The broker will manage your expectations, guarantee you get the best outcomes and answer any questions you may have. Here are common questions about selling a distribution business that a broker can help answer.
How much should I sell the business for?
This is one of the toughest questions to answer. With all the work you have put into the business, you may feel like it is priceless. Setting a selling price on your own can thus be very hard. It is the job of your business broker for distributors San Diego to help answer the question on the selling price. The broker will start by performing a business valuation. This helps determine the fair market value of the business. Second, the broker will determine several factors such as the economic climate and goodwill to determine the most appropriate selling price. Once the selling price is set, the business broker will help you sell your distribution company for its full worth.
When should I sell my business?
There are many reasons why you might want to sell your distribution business. Whatever the reason is, you must make sure the timing is right. Your business broker will evaluate your reasons for selling to determine if they will win the trust of buyers or repel them. In most cases, the best time to sell is when your business is at its peak. This is when you stand to command the best price and get more bids. Whether you plan on selling your business locally, nationally or internationally will help the broker determine if it is time to sell or not.
Can the business survive without you?
Still on deciding whether to sell or not, an important question you need to ask is if the business will be able to survive without you. If the success of your business is tied to you, selling now will not be the wisest decision. You need to start working on your team, processes and systems to ensure the distribution business can thrive in your absence. It is not until your business can thrive without you that you can sell.
Our team at So-Cal Business Brokers is always happy to answer any question you may have and give you all the help you need. Get in touch with us for a consultation.