10 Tips For Successfully Selling a Business

George and Company has been successfully aiding companies looking to sell their businesses for over 27 years.

We are experts in the process of selling a business, and we understand the large financial commitment involved. As a seller, you want the best price for your business and there are many things you can do to prepare for a potential buyer.

When we work with our clients, we begin by doing a full business valuation and assess each aspect of their business to obtain the highest potential value. Your business is your biggest investment, and we will work endlessly to ensure that you get the right buyer who will pay the right price.

We have created a list of the top 10 things you should consider when selling a business. These 10 tips have been proven to be effective in selling a business and not only do we firmly believe in these steps, we practice them as well when working with clients.

Top 10 Tips For Successfully Selling a Business

1.) Your Investment

You’ve invested many dollars and many years of your life into your business. The sale of your company will likely be the largest financial transaction you’ll ever make. Engage the appraiser and broker that will get you the best return on your investment.

2.) Confidentiality

Confidentiality can be one of the most important issues from a seller’s point of view. Maintaining a high level of confidentiality is critical so that employees, vendors, competitors, creditors, etc. don’t find out until the time is right. Have a non-disclosure agreement executed before disseminating any information.

3.) Valuation

“Rules of Thumb are Rules of Dumb!” Industry formulas can be deceiving. Be sure to have a certified business appraisal done. Hidden value can be discovered and highlighted to maximize your company’s worth. Only the Right Buyer pays the Right Price. Select a certified appraisal that will identify the Right Buyer.

4.) Intangible Assets

Don’t overlook the value of intangible assets such as goodwill, licenses, patents, trade names, customer/vendor lists, intellectual properties, etc. The proper allocation of these items can have significant tax savings for the seller at closing.

5.) Negotiation

In this fast paced global economy, the trend is for buyers to tender letters of intent to buy with no money on the table. You want to rely on a professional that will negotiate the best price and terms for your company. A professional negotiator won’t leave money on the table.

6.) Bank Financing

Most deals fall through without the aid of an expert in SBA 7(a) or 504 financing to ascertain if the Buyer is qualified. Getting an offer is just the beginning and often the end if proper financing cannot be obtained.

7.) Seller Financing

While an expert in SBA financing can usually get you a cash sale, some businesses do not qualify. Properly secured Seller financing can generate a nice, interest-bearing annuity and sometimes defer payment of taxes.

8.) Advertising Technology

There are over 20 websites that specialize in businesses for sale, but you have to know which ones work best for your industry. Creating a proper marketing strategy is key to the successful sale of your business. Direct mail, print media, industry publications, and other marketing materials can help round out maximum confidential exposure.

9.) Condition of the Equipment & Physical Plant

Like selling a home, first impressions count. Equipment in top working order, re-lamped lighting, and a coat of paint can help clean up your business and present it to a buyer in the best light to maximize its value.

10.) Timing

Unlike the stock market, it is much easier to determine the right time to sell a privately held company. Industry roll-ups, strategic buyers, lenders view of your industry, and unemployment can have a dramatic impact on value. Consult an expert to determine when the time is best for you.

All of these tips will help you maximize the value of your business and allow you to get the best price from your buyer. If you are looking to sell your business and need professional services, please give George and Company a call at (508) 753-1400 or contact us online.

Looking for expert guidance in selling your business?

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