The Best Way to Sell a Small Business
Have you decided it’s time to let go of what you built to move on to life’s next adventure? Whether that’s a career change, going a new route as an entrepreneur, or retiring and spending more time with family, you deserve to earn a fair asking price for the time, money, and hard work you put into your business over the years. Detailed below is the best way to sell a small business.
Successfully Selling Your Small Business
There are many options out there for selling your small business, but which one yields the best results? You’ll want to consider your unique situation, as not all options work for every type of business.
A small business owner looking to sell might choose to:
Sell to a family member to ensure a source of generational wealth will stay in the family;
Sell their portion of the business to one or more business partners;
Or sell to an interested employee.
While these are all valid choices, they’re often very time-consuming and may take your focus away from running your business. If none of the above options fit your unique situation or don’t sound appealing, then hiring a business broker is the best way for you to find a qualified buyer to sell to.
Hiring a Business Broker
A business broker acts as the leading facilitator of the sale and guides the seller to ensure they receive a desirable offer. They know the ins and outs of the industry and what a buyer is looking for when browsing businesses for sale. With this knowledge, they can help you optimize and market your business to attract more interest from the right candidates.
A considerable advantage of hiring a business broker over selling your business independently is the broker’s expansive network of contacts interested in opportunities like yours. Plus, brokers know how to lay out a business listing with the right terms and metrics, like cash flow, tax returns, balance sheets, and other financial statements. They also know how to present this information to attract qualified buyers.
Other items a business broker will handle during the selling process are:
Determining a non-biased asking price through business valuations
Screening and pre-qualifying prospective buyers to differentiate between genuinely interested buyers and window shoppers
Managing the confidentiality of your sale through non-disclosure agreements
Preparing necessary legal documents and business financials
Booking meetings with potential buyers
Assisting with succession planning
Containing offers, assisting with negotiations, and drafting purchase agreements
Working with a business broker is the best way to sell your small business because they help relieve the stress of time-consuming tasks and allow you to run the day-to-day operations knowing the sale is being nurtured. Plus, sellers who hire a business broker sell their business faster and for a higher sale price than those who sell without assistance.
Are you ready for a successful sale of your business? Reach out to a our firm for assistance in forming an exit strategy or preparing and marketing your business for a deal with a selling price that pleases everyone!