Most professionals thinking about selling their business have never been through the process before, so they naturally have quite a few questions about starting the process and the actual process itself. So today we will be addressing some of the questions we hear quite often from our sellers to hopefully ease your mind.
I have been thinking about selling my business myself, is this something I can do? The short answer is yes, of course, but the long answer is as follows. Selling a business takes an enormous amount of time and effort, compound this with the fact that you must run your business at the same time you are selling it and right there is a pretty good reason to seek professional help. On top of the time commitment, most professionals do not have access to a large network of buyers, trusted resources like financial professionals and attorneys and the knowledge and experience to get to the closing table with a beneficial transaction at hand. Using the services of a professional will ensure that the business sale process remains confidential, a suitable buyer is chosen, the deal is structured well and ultimately you, the seller, gets a profitable deal.
How do I put a value on my business and is it worth selling to begin with? Valuing a business takes into account numerous factors from the financials of the business, to industry multiples and goodwill. It is always best to allow a professional with a good understanding of how to properly perform a valuation to do so. A professional will be able to identify the sweet spot between valuing a business and valuing a business for sale. And to address the second part of the question - Transworld firmly believes that most businesses are worth selling, it is simply a matter of the right price at the right time!
What can I do to help my business sell? This is such a great question and there are a number of things you can do to improve the chances of your business selling. First, you can prepare your business for sale by getting a good transition plan in place. This involves removing yourself from the daily operations of the business as much as possible. This might involve hiring a manager or offloading responsibilities on current employees. This can also take the form of outsourcing accounting and documenting processes and procedures. Another great way to improve your chances of sale is to be open to seller financing. Seller financing further opens up the opportunity for purchase by a buyer, by expanding their financial reach and showing your continued vested interest in the business.
I would like for the sale of my business to be kept quiet. Is it even possible to list my business for sale and keep it confidential at the same time? Yes, it is possible to keep a business sale confidential, in fact, we prefer it! When word of sale gets out to employees, customers, and vendors it can complicate the sale process. Employees may leave to find new jobs out of fear, or customers may take their business elsewhere because they think business is not doing well. All of this can have a negative effect on your business, which in turn can decrease its chances of sale. Transworld is able to keep the sale of your business confidential through a few methods such as listing blind ads (not naming the business), requiring non-disclosure agreements to be signed by all potential buyers, as well as simple things like planning business meetings at our offices or in a coffee shop.
To learn more about the business sale process and to discuss additional questions you may have, please visit our website or schedule a free consultation with one of our brokers.
Rachael Holstein joined the Transworld Team in 2016 as Marketing Coordinator. Her working experience has been largely focused on Business Development and Marketing in the finance, architecture, property management, and information technology industries. A longtime resident of Cleveland, Ohio, she attained her Undergrad from John Carroll University and a Master's Degree in Global Interactions from Cleveland State University. She relocated to Denver in 2013 for a change of scenery and a bit of adventure.