How do I know when I am ready to sell my business?
Only you really know when you are ready. Signs that indicate it may be time to sell include:

• » A lack of interest in daily tasks and new challenges presented by the business.
• » Increased interest in outside activities.
• » Exhaustion from the business unrelated to a recession in the business cycle or a short term challenge.
• » Fear of failure combined with the lack of time to turn it around.
• » Clear visions of what you are going to do next that do not leave time to manage the business.

When these thoughts move beyond pipe dreams and start to be reflected in actions, it is time to sell.

We recommend you get an early analysis, perhaps three years prior to your projected sales date. This allows you to adjust your business footprint and business results to increase prospective buyer interest and business value. The analysis provides you with valuable data and insight to use as you develop your exit strategy, retirement plan, and estate plan.

How do I know when I have found the right person or company to sell my business or business real estate?
The Big Three factors for determining who you should work with when selling your business are

• » Technical Competency
• » Experience
• » Integrity

Your intermediary needs technical competency to point the transaction in the right direction from the start. Seemingly small, but valuable, adjustments in a transaction might be easy to include in the beginning, but could become very cumbersome or impossible to structure shortly before settlement.

Your advisor needs experience. While every transaction is unique, experience provides the confidence, background, and systems to work through the problems and find good, even great, solutions.

The most important criteria of all is integrity. If you do not trust your advisor, you will find it  difficult to seriously consider his advice when the going gets tough.

Interview prospective advisors until you find one that you are comfortable with, and who has the necessary technical competency, experience, and integrity.

I am ready to sell! What do I do next?
The best place to start is to contact us!  On a more general note, you should put together a sales team that can get the job done. This usually includes an experienced intermediary who manages the process and performs the sales function; a tax advisor experienced with sale transactions; and a ‘deal making’ transactional attorney. With good advisors on board you can then begin the sales process. We use our Successful Exit Process outlined on the Sellers Page.

I have a really unusual business. What is your experience with my type of business?
We have a lot of experience selling unusual businesses and hard-to-sell properties. In fact, the unusual is the norm. One example:

Country restaurant owners asked us to represent them to sell their business after it had been on the market for the better part of three years with no purchase offers in sight. The charming restaurant was located in an out-of-the-way location. By segmenting likely buyers into different market groups, and then developing an advertising plan for each segment, we were able to produce an all-cash buyer in about four months.

Challenges presented in selling businesses tend to be similar across most industries. The use of our Successful Exit Process allows us to learn about the unique aspects of your business and industry and then take appropriate actions to ensure you get favorable results.

I might want to keep a part of my business and sell the rest. Is that possible?
Anything is possible if it makes sense to the seller and a buyer. When a business has multiple product lines, or multiple locations, we always investigate selling the whole, the parts, or just a part; in order to produce the highest value and meet other seller needs. This is a real recent situation:

The seller was a local technical services firm that provided similar services through two divisions to two distinct customer groups. Through effectively questioning buyer motives and buyer valuation techniques, we determined that the buyer only valued one of the two divisions and customer groups and intended to shut down the other division.

By working through the buyer’s concerns, and by carefully defining each company’s services and customers, we were able to convince the buyer to allow the seller to retain the second profitable division with no reduction in price. Both firms continue to be satisfied with the transaction and cross-refer clients.

How much time will it take to sell?
The sales process often takes between one to two years. Every circumstance is different. It is important to start this process while you have the energy and interest to keep improving your business results through the sales cycle. In general, you are better starting the process a little early as opposed to starting late.

Can you help a buyer find financing?
We quite often help find the financing to complete the sale. After all, a seller’s value is directly impacted by the buyer’s ability and cost to finance. This was a real situation:

The business at a long time wholesale and retail business had slowed down over the last several years, along with the owner. This reduced the cash flow available for the buyer to use for financing purposes. We were able to assist the buyer by recommending changes in the proposed business plan and by recommending cash flow changes that would be acceptable to SBA and meet the lender’s needs. This increased the loan amount by $200,000, which allowed the transaction to proceed to closing.

If you have additional questions, contact us today.  We answer most questions within one or two business days. You may also sign up for our email newsletter which includes a brief informative article on business sales issues each month.