Making the decision to sell your business doesn’t come lightly — you’ve likely put in endless amounts of energy, time, and money into growing and operating your business. After all, it’s your life’s work! So, when it comes time to sell — whether due to retirement, unexpected changes, or another life calling — you want to ensure you’re in the right hands regarding professional guidance. This is where an experienced business broker comes in. They can ensure you get the best possible price for your company, as well as help settle on agreement terms that leave you confident that you made the right choice. Read on for a few commonly asked questions received by sellers.
Why do I need a business broker?
In much the same way you hire a real estate agent to help sell your house, business brokers are skilled in facilitating the successful sale of your business. A professional business broker can help you structure the sale (i.e., what is included in the sale, what updates need to be made first, etc.) and settle on the right asking price, as they are well versed in finding comparable companies that have sold. They can also help find the right buyer for your business, so that you can feel at ease during the entire process and know that you are leaving your company and brand in the right hands. From marketing your business to negotiations to closing, the business broker will be with you every step of the way.
What can’t a business broker do?
On the other hand, a business broker is not someone who can magically sell a business that has too high of a price tag. Sellers must understand that only the current marketplace can determine the sale price.
How long will it take to sell my business?
On average, it can take anywhere from six to twelve months to sell a business — though please note that this is just an average. Some companies may take longer to sell, some less. The sooner the business broker has all of the appropriate information, the sooner you can get things wrapped up! This includes gathering financial statements, making necessary repairs, taking stock of inventory, and updating digital assets — essentially just getting all your ducks in a row. Also, the business must be priced properly from the get-go!
What is needed from me to help sell my business?
Make sure to have at least two or three years’ worth of financial information, including tax returns, income statements, projections, employment agreements, vendor contracts, etc. Also be sure to clean up any brick-and-mortar stores with paint, repairs, and/or decluttering. If you have a financial advisor, attorney, and/or bookkeeper, involve them in the process with the business broker.
I have a buyer for my business — what now?
Believe it or not, finding a buyer for your business is NOT the most difficult part of the process. Most potential buyers hope to find a seller who hasn’t yet been properly valuated and/or marketed correctly to create the competitive environment that will, many times, result in the highest paying and best suited buyer. Even in circumstances when you have a ready, willing and able buyer, you should still consult with a good business broker who can advise you through the rest of the process.
Don’t enter into, most likely, one of the largest life changing experiences without a trusted advisor! Trust the experts — contact The Jacksonville Business Broker today to learn more and receive a free and confidential business valuation.
