How To Sell A Business!Great Tips On This Page:
How To Sell Your Business!
Need more information about how to sell a business? We understand. It’s not something you do everyday. In fact, the chances are that you have spent many years building your business to the point where you are today. But, whether you are ready to retire, making changes in your life, or just ready for a new challenge, you need good information on how to do it. You need to know the ins and outs and the pitfalls to watch out for. That’s the purpose of this page. Here we offer you all of our best thinking and best advice that you need to know. We pull no punches here and tell you everything we know. Feel free to browse through everything here and call us when you’re ready to move forward. Be sure to take a spin through our blog for even more detailed tips on how to sell your business.
Seller Frequently Asked Questions
What Are The Steps At Selling A Business?
Below are the general steps your Century broker will guide you through when we sell your business:
- Help you identify the goals you expect to meet with the sale of your business.
- Market the sale of your business confidentially. Your employees, customers and competitors will be unaware that your business is for sale.
- Screen potential buyers before presenting them to you.
- Work with you to arrange meetings with potential buyers (this may include evenings and weekends).
- Begin negotiations between you and the potential buyer when both parties feel comfortable proceeding. Your broker will also help you evaluate each offer when trying to sell a business with his or her knowledge of current market trends, financing matters and business law and terms.
- Manage the negotiations, keeping your interests in the forefront, until an acceptable deal is agreed upon and closing legalities are finalized.
- Work towards your complete satisfaction in every facet of the successful sale of your business.
A more detailed outline of how to sell a business with Century will be provided.
What Can I Do To Help Sell My Business?
As we begin the process of selling your business, there are certain things you can do to help us:
- Keep normal working hours.
- Make sure your financial records are an accurate reflection of revenues, business expenses and assets/liability levels.
- Conduct business as usual. Do not let inventory levels drop below normal.
- Keep the business clean and in good repair.
- Remove equipment or furniture that is not part of the sale.
- Provide us with required information in a timely manner.
- Be as accommodating as possible in setting appointments to meet with buyers.
How Does Century Guide Me In Valuing My Business?
Your Century advisor will typically help you in determining the value of your business and establishing an asking price. Your broker will explain the costs and benefits of such valuations process during your initial meeting.
Century advisors typically adhere to a 10-step process in managing business sales transaction; however, we may modify this process based upon the nature of your business or local market conditions. When you meet with one of our advisors, he or she will be delighted to provide you with a detailed explanation of the entire marketing process.
We first market your business to our large database of qualified buyers. To sell a business, we advertise on the Internet, via several other business listing websites, giving your business exposure to thousands of potential buyers. Many buyers will relocate for the right business. We may run “blind” advertisements in the business opportunity section of the local newspaper. To ensure your confidentiality, all marketing excludes any specific identifying information on your business.
Confidentiality is necessary and critical.
What Types of Offers Should I Expect To Receive When I Sell?
An astute buyer is going to structure the initial offer to ensure that they get the best possible price and terms from you. Therefore, you should expect to receive a low initial offer. This is normally just an initial offer to “test the waters.” It’s the first step in the negotiation of an appropriate purchase price for your business. All offers will contain some important contingencies, including review of the financial books and records of the business, obtaining a satisfactory lease and agreement on training and transition periods. Other contingencies specific to your business may also be included. Contingencies are normal and provide the buyer with the opportunity to verify the information presented in the marketing materials. Our job will be to minimize the contingencies.
How Long Will It Take To Sell My Business?
There are many factors (i.e. asking price, the buyer’s ability to secure financing for the purchase of the business, the business’ location, local economic conditions, the nature of the business) affecting the length of time it takes to sell a business. Consequently, there are wide variations in the amount of time required to sell a business (in some cases weeks or years). That said, a selling period of three to six months would be average.
How Will I Be Protected If I Finance The Purchase?
The closing escrow agent can prepare a promissory note, a security agreement and will file a UCC-1 financing statement with the appropriate state and local agencies. It is much like financing a car – the lien can be recorded in the public records and the assets listed on the UCC-1 can not be legally sold or refinanced without your permission.
Call Us Today: 517-349-1955
All Inquiries and information are kept strictly CONFIDENTIAL!