Selling A Business
Most reasons businesses do not sell after due diligence can be tracked back to something that was not disclosed during the initial listing interview.
The No Surprises Way of Getting Ready to Sell
Okay, so now you have decided to sell. Here are some guidelines for you to get ready to list with us. We need to know everything about your business so we can eliminate any surprises, no matter how small that might inadvertently kill your deal.
Do You Have Effective Financial Records?
You need to be prepared to share all your documents and relevant business information with us. Don’t worry. We will keep it confidential but we need to help you recast them for the sale.
Are You Open To Competitive Pricing?
The price needs to be not too high but not too low. We will help you come arrive at the price the market will bear but that will maximize your returns.
Are You Open to Leverage?
Most businesses are sold with seller financing. You need to at least consider seller financing. Seller financing has some tax advantages and shows you are willing to stand behind the sale.
Do You Have a Complete and Accurate Inventory?
You will need a complete list of all assets. Furniture, vehicles, fixtures and equipment should be in working order and acceptable to a buyer.
Can You Pre-Arrange your Lease?
The new buyer is going to want a good lease. This needs to be handled in advance so the transaction can go smoothly.
Are You Willing To Sign a Non-Compete?
Most Buyers are worried that you might open up the same type of business and become their competition. You need to consider signing a non-compete agreement to help them feel confident in their new business.
Are You Willing To Train the New Owner and How Much?
The seller customarily is prepared to train the new owner and new staff. You need to be willing to do so. How much is a matter of negotiation and we can help you with that.
Are You Ready to Invest Time Into Your Curb Appeal?
Now that you have decided to sell it is really important that you keep working the business, keeping the site clean, organized and neat. The place needs to be kept up and repairs made before it is shown to maximize the perceived value.
Are You Willing To Be Responsive to Show the Business And To Respond to Offers Quickly?
In business sales time really is of the essence. You need to be willing and able to make your business available for showings and to be able to respond quickly to any and all offers. Remember, even low-ball offers can sometimes be re-negotiated into sales.
Sellers can ruin deals that could be “cured” or resolved. Here are some of the most common mistakes:
- The Seller can’t really give a valid reason for selling
- Are unprepared to accept seller financing or have impatience with the buyer’s financing process
- Are not honest about their situation or their business
- Fail to disclose there is more than one owner and they are not in agreement to sell the business
- Unrealistic about their price and market
- Have not checked with their outside advisors about the implications of selling their business (this includes family members)
- Undiscovered problems that come up
- Seller’s inability or failure to provide documentation and info.
- Over zealous attorney’s/accountants who forget their job is to get the deal done, not put up roadblocks and run up their fees.