For Business Sellers

As a business owner, one of the most important decisions of your business career is the decision to sell your business.

There are many reasons why Owners sell. All are individual to each Owner and the following are just a few of the reasons or causes:

• Retirement.
• Health issues.
• Partnership dissolution.
• Desire to turn your biggest asset into cash.
• Not interested in investing additional long-term capital.
• No one available that wants to enter the family business.
• Getting estate in order or estate planning. This can be done at any age.
• Want to step away from the business world, cash out and go fishing, at least for a while.
• And "burn out." It doesn't matter if it is after five or fifty years. Everyone has an individual situation.

Whatever the reason, you need to plan on an orderly transition to new ownership, leaving you free to implement your plans for your future. Most sellers do not realize the steps that should (or must) be taken to insure a successful sale.

Among the many steps necessary, here are several to take into consideration:

• Prepare a plan to sell before even thinking of selling. In other words, formulate an Exit Plan.
• Be aware of just how important Confidentiality is in the process of the sale.
• Prepare yourself with a true Opinion of Fair Market Value, before committing to an Asking Price.
• Prepare yourself, your business (appearance, equipment) and your financial records before going to market.
• Select the proper representative for the transaction. Only a Business Broker/Intermediary has the knowledge, experience, and tools to safely and properly bring the sale to a successful conclusion.

Confidentiality: Procedures must be in place so that your business is not harmed by premature disclosure about the sale. The professional Business Broker has developed Confidentiality Agreements, procedures and networks of other brokers to ensure confidentiality.

Valuation: It is usually necessary for you to have an estimate of value of your business. It can be provided by our members to assist you in your pricing strategy.

Business Profile: In order to present your business to a prospective Buyer, a written Business Profile must be prepared to show the facts. The presentation package includes pertinent facts about your company and recast financial information that allows your business to be presented on a level playing field.

Marketing: There are many avenues available for the exposure of your business to prospective Buyers. However, there is no one method that fits all. The methods must be tailored to your specific business. The selection by your Broker may include some or all of the following:

• Business listing websites
• Direct mail
• Trade journal advertising
• Telemarketing
• Networking
• Newspaper advertising

All of these methods are used in addition to exposure to an existing, pre-screened, client base that your Broker has developed over the years.

Negotiation: Your professional representative will guide the prospective Buyer and their agents, if any, through the follow up in the preparation of the offer and the resulting negotiation to the binding, written Purchase and Sale Agreement. Your representative proceeds in a timely manner, all the while preserving the integrity of your negotiating position to lock in the terms and price that is acceptable to you.

Closing: Once an Agreement has been signed, your Broker schedules and helps control the process from the signing of the Agreement to the time when you transfer possession and responsibility of the business and receive your full consideration. During this critical time, deadlines must be met and conditions satisfied, along with the unexpected twists and turns that are part of any transaction. Your Broker is there to handle all of the contingencies and see you through to a successful closing.

If you are ready to get started, it is time to Find a Broker!