Top 16 tips for Selling your Business
With Phuket Business Broker
Following these simple Top 16 tips for Selling your Business can be a life saver and make selling your business an easy, headache free task.
1. Be realistic about the value of your business. Inflated expectations interfere with your business intermediary’s ability to negotiate the best value for you. Buyers are concerned about Positive cash flow and profit. You may have spent big money on the new paint or tables in your lobby. But the only thing that really matters is how much profit your business produces.
2. Carry on business as usual. Don’t become so obsessed with the transaction that you ignore the more day-to-day demands. Don’t check out early. Your eventual buyer will need to see a healthy business, not one suffering from neglect.
3. Keep the sale process strictly confidential. A breach of confidentiality surrounding the sale of a business can alter the transaction dramatically. Any potential purchaser looking at a business for prospective purchase must sign a confidentiality document. Phuket Business Broker can prepare such a document for you.
4. Get your Ducks in a row. Prepare for the sale well in advance. Be sure that your records are detailed and complete for at least the past few years and that you do all pertinent legal or accounting housecleaning as well as carry out a physical sprucing up of the plant or office. The work you do now will definitely pay off at the time of sale. Good books/records give buyers confidence. Good conditions and cleanliness are what attract potential buyers to consider your business.
5. Achieve the highest price through buyer competition. Since this can be tricky, you’re advised to let Phuket Business Broker, as a third party, create a competitive situation with buyers to position you for the best transaction value. Phuket Business Broker Knows the market. Let us help you get a fair evaluation. To maximize timing and the sales price for you.
6. Be flexible. Don’t be the kind of seller who wants all cash at the closing, or who won’t accept any contingent payments or an asset transaction. Flexibility will often help you sell more quickly and at a higher price.
7. Negotiate, don’t dominate. You may be used to being your own boss, but the buyer may be used to having his way too. With Phuket Business Broker’s help, decide in advance when to hold and when to fold.
8. Keep time from dragging down the deal. Work with Phuket Business Broker, your accountant, your lawyer and any other experts who may be required to be sure that potential buyers stay on a time schedule and that offers move in a timely fashion.
9. Be willing to stay involved. Even if the process has been exhausting, realize that the buyer may want you to stay within arm’s reach for a while. Consult with Phuket Business Broker to determine how you can best achieve a smooth transition from owner to past owner.
10. Above all, remember that planning ahead is key. I find that too many business owners fail to plan for the day when they will want to sell. Then something happens – most often a health problem – and they are forced to sell quickly. Rushing to sell can result in a failure to recoup the true value of the business. The best time to sell is when you don’t have to.
11. Share Your Enthusiasm “Potential buyers are leery of your reason for selling your business, and they spend a lot of time digging to determine why you’re selling. Although that is to be expected, you can help ease their concerns by sharing your enthusiasm for the business and its future prospects. Your enthusiasm for the business will resonate with your buyer and may be the difference between selling and not selling. ”
12. Sell Your Systems “Showcase the systems you created to run your business. In addition to selling the business properly, having systems that can generate revenue and manage the administrative side of your business will increase its value.” Procedure manuals, vendor lists, online accounting forms, automated channel management. Systems and attention to the details increase the value of your business.
13. Determine the Best Way to Finance the Sale: How the purchase is financed is just as important as the purchase price. You might be better off taking a lower purchase price with all the money paid at closing than providing seller financing for a higher purchase price. We have often seen frustrated sellers who are stuck trying decide whether they should litigate over nonpayment’s. A bird in the hand is definitely worth two in the bush.” You must always balance flexibility, timing, and risk. Phuket Business Broker will be there to help you with these decisions.
14. Keep Emotions Out -It’s hard to do, if not impossible. Business owners put heart, sweat and tears into their businesses. It’s hard, but worth it, to separate emotions from the decision process. Focus on being fair, and have a collaborative approach. You’ll want to have a relationship with the acquirers moving forward, so focus on being open, transparent and creating value for both sides.
15. Make sure your social media is interesting and up to date. Buyers are very aware of the power of social media. You should have your Facebook, Line, Linkedin, Instagram, all current with quality information about your business. Your web site should be inviting and help to sell the business. If you don’t have a website invest in one NOW before you list your property.
16. Keep your sales price consistent across all advertising channels. If a buyer sees two different prices they immediately think they can negotiate more.
At Phuket Business Brokers we are here to help. Contact us today for a free Business Evaluation.