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Are You In The Market To Sell Your Business?

Discussion in 'General Business and Entrepreneurship' started by Nunzio Presta, Feb 18, 2016.

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  1. Nunzio Presta

    Nunzio Presta Member

    Some of us start a business knowing we eventually want to sell the business. And some of us just start a business. But down the line…a few or many years later…we think about “getting out,” retiring or moving on to something new.

    There are different ways to “sell” your business — it could be a matter of passing it along to the next generation, selling it to one or more members of your staff or going outside the company for a merger with or acquisition by another company or outside investor.

    While it may take a few months or a few years to sell your business, planning for that eventuality should start now. No matter who your buyer is, as the seller you need to get your ducks in a row.

    Here are the important components to consider if you want to sell your business:
    • Have a strong brand – a clearly-defined profile of your audience, the products or services they buy, and the products or services that you offer. Is your company considered an “expert” in the field? If this is a bit “hazy,” it may be time to narrow the focus of what your company offers (think “niche”) — and have an eye to not only what your customers are buying but what someone who is buying your business might be looking for. Some companies buy other businesses to expand what they offer, some buy to eliminate competition or add customers and others are in need of additional trained staff. Exploring “why” someone might buy your business is as important as “why” you might be selling.When you’re ready to sell your business, you now have a new audience…think of them as customers who are buying the business you are selling.
    • Leadership and staff with experience and expertise — who can lead and run the company and be part of the sales package.
    • Processes are in place and are well-documented – from operations to human resources to accounting to project management; a veritable “users manual” for your company.
    • Accounting – you can show clean financials: all records are up-to-date and accurate, accounts receivable and payable are current, taxes are paid, personal expenses are separate from business expenses; it would be prudent to have the financial component vetted by an outside firm.
    • Legal – if possible, any outstanding legal issues should be be resolved; remaining issues will require disclosure.
    • A sustainable model for how the company can succeed, years into the future. This includes a loyal client base, a book of business (as well as evidence of a pipeline of potential sales), products or services that will be in demand and evidence of cash flow.
    • A proven marketing strategy is in place and executed on an ongoing basis.
    • Compliance – all software utilized by your company should be licensed and up-to-date; required certifications, accreditations, etc. are current.
    • Other Assets: If your company owns or leases real estate, machinery or other furnishings that will be part of the transaction, confirm that any leases are in order (you may want to negotiate extensions if little time is remaining) or that title is clearly held to facilitate sale or transfer of the property.
    • No surprises! Transparency is imperative – all issues from legal, financial, employment, inventory or otherwise — must be disclosed.
    • Your exit plan — are you willing to keep your “hand in the business” as an advisor or consultant? Would you consider a workout of 1,3 or 5 years? Will you finance the purchase or accept cash, stock or a combination as payment?
    • Before undertaking a sale, it’s in everyone’s best interest to have the business valued by aBusiness Valuation Expert.
    On a side note, I think many business owners don’t want to sell their business because it’s been their life…they are very tied to it and once they sell, they’re not sure what they’ll do. Prepare yourself for this eventuality as well. Setting up yourself as a consultant, starting a new business or heading in to full-time retirement…all require preparation!

    *Let BizON be part of your buy or sell journey by becoming a member of the fastest growing business-for-sale online marketplace. Signup today for free and start promoting the sale of your business or franchise for as little as a coffee a day! Click here to get started.

    From The Desk of BizON

    Health. Happiness. Family. Success.

    Remember, if you are interested in receiving the latest business news, insights and opportunities from BizON, click here. Also, if you are not a member yet, what are you waiting for? Click here!

    This article was written by Martha Spelman. For the original article please click here.

    *Additional text added by BizON Incorporated

  2. remnant

    remnant Member

    Thanks for this comprehensive thread on selling a business. Personally, I have never sold a business. I have come to note that most people sell their businesses for non-performance.
    Nunzio Presta likes this.
  3. Vinaya.Ghimire

    Vinaya.Ghimire Member

    I have online and offline businesses. The main thing that I am considering at this moment is sustainable model. Both of my businesses are new and they are dragging,therefore, I am looking for the ways to build up paid up capital.
    Nunzio Presta likes this.
  4. Spirit

    Spirit Member

    That's great information. I haven't consciously thought about selling my business though I have thought in the past about the principle of building the business up to the level that it can be sold. I'm a long way away from that now but at least I have something to work towards.
    Nunzio Presta likes this.
  5. Nunzio Presta

    Nunzio Presta Member

    Or lifestyle change, retirement, illness, etc etc.
  6. Nunzio Presta

    Nunzio Presta Member

    BizON is here to help when you are ready :)

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