Facts You Should Understand Before Selling a Business

With the right business broker San Diego by your side, you will be able to navigate the challenges that get in the way when selling a business. Business brokers have more experience and will see to it that you sell fast and at maximum profit. Even so, there are a couple of facts you need to understand before you start selling your business.

Buyers don’t pay for potential
One of the biggest mistakes business owners make is that of asking more for their business because they believe it has more potential. This will never cut it in a business sale. Potential is just a concept that has no proven revenue stream. Buyers want to pay for what they can see and prove. With that being said, you must never expect your buyers to pay more simply because your business has the potential to earn more in the near future.

Buyers are more interested in the profits
Revenue is important because it shows that a business is doing really well. All in all, it is good to note that buyers are not really interested in revenue but rather in profits. Revenue figures sound great but buyers will focus on the profit that the business turns in. Your business brokers San Diego will help you prove that your business is profitable by creating a report based on your previous financial records. Your broker will show buyers your profit numbers and not the revenue.

Verifiable financial claims are a must
One of the main reasons why buyers will want an independent business valuation report is so as to verify the claimed numbers. Business buyers are interested in verifiable proof. What this means is that you will need to present them with bank statements, invoices and all other financial records. If you cannot prove that your business is as profitable as you claim, you will end up pushing potential buyers away.

Do not live in the past
Business buyers are interested in the future of your business and not the past. The previous successes of your business are irrelevant in a business sale. If your business was successful in the past, it just shows there is a downhill trend and that will not be attractive to buyers. When considering a business, buyers are interested in the most recent performance; normally the last 12 months. They are also interested in future sustainability and viability. How successful your business was in the past will not cut it in a sale.

Selling a business is never easy. That is why you need to hire the best business broker San Diego to help with the sale. You also need to be prepared to answer a lot of questions and be honest.

Business broker San Diego

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

The Sales Process