Selling Your Business? Five Hurdles to Avoid
Thinking of selling? All too often, business owners trip over some avoidable hurdles. Here are a few:
What’s Important to YOU?
First, clearly define your objectives. Generate cash to start a new business? Retire and travel? Enter into a partnership? Remain in your business through transition as a consultant? These decisions help position your business for sale and assure you achieve your goals.
Timing Is Critical
Consider the M&A market and transaction trends. Selling in a low interest rate market can generate greater prices from financial buyers. A bullish stock market often fetches a higher price from strategic buyers. When the two indicators unite, your opportunity for a more attractive price improve dramatically. Also, realize that it takes time to negotiate and close a great deal, so get started early.
Don’t Go It Alone
Selling a business is complex. And a once in a lifetime opportunity. Brokers add significant value, Ask questions. Does the M&A/business brokerage firm have a top-notch team – attorneys, accountants, appraisers, marketing experts – to make sure every detail is addressed? Buyers know that sellers who partner with an M&A advisor are far more prepared and committed to selling and closing. They also know that brokers can compress the deal timeline and help eliminate roadblocks.
Your business is your baby, and it means the world to you. But inflated expectations are not always met. A broker’s valuation is realistic given the market, your track record, clients, assets, terms and more. A licensed, experienced broker who has a clear understanding of the critical variables can attract more suitors and ultimately increase the value of your business. Timeline
Focus on Values
Of course, you’re eager to know the value of your company. But also get to know the values of your broker. Choose wisely. Experience and expertise are essential. As are the advisor’s commitment to you and your business. Bottom-line, when choosing your business broker, hire a professional with the “The Three Cs” – Confidentiality, Competence and Character.
Based on its team of experts and years of experience, The Salazar Group offers business sellers a full complement of consulting/advisory services, capably guiding entrepreneurs through each step of our proven sales process.