Unlike selling a home, you will only sell your business once.
Every transfer of business ownership is unique – the better prepared you are, the more successful the outcome will be. Additionally, working with an experienced business broker like the ones at Midway Business Brokerage in New Jersey can help streamline that process. Below is a brief outline with tips on what to expect when selling your business.
Prepare Details That Potential Buyers Will Need
When selling your business, not only will potential buyers want to know the reason for the sale of the business but they will also want to review the financials and details of the business.
For this reason, you will want to have your financial statements and tax returns dating back to the last 5 years readily available. You will also want to make a list of any equipment that’s being sold with the business, a list of contacts related to sales transactions and supplies, and have a copy of other relevant paperwork such as your current lease.
Maintain Confidentiality
Once you’ve decided to sell your business, maintaining confidentiality should be a priority. At Midway Business Brokerage we require all of our potential buyers to sign a non disclosure agreement.
Be Fair With Your Business’s Value
Most business owners think they have an idea of what their business is worth. But in many cases, the number in their minds is way off from its actual value. So before listing the sale price too high or too low, it’s best to bring in a valuation expert or a business broker who can offer you a BOV (Brokers opinion of value). At Midway Business Brokerage in New Jersey we can help you with either one of these services.
Stay Flexible While You Sell Your Business
As a seller, you should be flexible and creative with the terms of the transaction. Most buyers will look for seller financing. The more open you are with different payment terms the easier the sale of your business will be.
Do Not Neglect Your Business
One of the biggest mistakes you can make is to ignore your business and start focusing on the deal instead. This can be a costly mistake to make because the deal isn’t finalized until the deal closes. Remember buyers want to run a business full of potential and this is likely why they were initially attracted to your business.
Final Thoughts
While selling your business may require more details then selling your home, being prepared by using the above tips can help make the process smoother. Working with a leading broker like the ones at Midway Business Brokerage in New Jersey can help you get the best support in maximizing your business’s value.
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