Tips to Help with a Successful Business Sale
Commercial business sales Hawthorne should never be taken lightly. The last thing you want is to initiate the sale but never end up closing. Our job at So-Cal Business Brokers is to ensure this never happens. We have been selling businesses for more than 20 years and we have a success rate of 90+%. Our team has everything you need to sell fast, to the right buyer and for the best price. Thanks to our experience, here are our top tips on how to sell your business successfully.
Know the loan value of your business assets
While you will have to prequalify potential buyers before letting them in, it is good to know the loan value of your equipment, fixtures and machinery before listing your business. The reason for this is most buyers will count on using your assets for loan or collateral purposes. The last thing you want is to learn in the last minute that the value of your machinery will not be enough to support the loan needed to put the deal together.
Resolve litigation and environmental issues
Buyers are not interested in taking over your legal issues. That is why when getting ready for commercial business sales Hawthorne you need to resolve all litigation and environmental issues. Doing so will make the business more attractive to buyers.
Be flexible about real estate
If you plan on selling real estate together with your business, then you have to be flexible with the real estate. In our experience selling businesses, we have come to learn that most buyers are only interested in investing in the business and not real estate. They feel real estate doesn’t make money for an operating business.
Be ready to accept lower valuation multiples
You will not always get the highest valuation multiples in commercial business sales Hawthorne. If you wish to sell your business fast you have to be ready to accept lower valuation multiples. This is more so if you lack management depth, regional versus national distribution and reliance on a handful of major clients.
Identify non-negotiable items
Long before a Letter of Intent is submitted you have to make it clear to the buyer what you will be selling and what will not be negotiated. Doing this keeps the deal from failing after due diligence.
There are many more things you can do to achieve success in commercial business sales Hawthorne. The aforementioned ones will, however, get you started in the right direction. Our team will also smooth the sale by ensuring you are moving in the right direction. Contact us now to learn more about our services and take advantage of our free consultation.