If you currently own a business in the Raleigh or the Wake County area and you’re asking yourself, how can I sell my business in Raleigh? We can help!
Business Brokers at Transworld Business Advisors service the entire state of NC helping business owners sell their businesses every day. After selling thousands of businesses in the Raleigh, NC area our firm has noticed buyer patterns over the years and while every business is different, most business buyers follow the same patterns when they look at buying a business in Raleigh.
Below are FOUR key items that business buyers in Raleigh pay close attention to when looking to buy a business:
1) Books & Records
2) Lease & Real Estate
3) Assets
4) Future Benefits & Cash Flow
1) Books & Records
The quality and clarity of your financial records have the single most impact on your business sales success and the price you get at the close. When we list our Top 10 Items that impact the sale of your business…..Books & Records accounts for Three of the Ten. The purchase of a business is a major event and often one of the significant amounts of money. No buyer is simply going to take your word for it that the cash sales that you didn’t put through your bank account are “really there”. So, in short, get organized, get a good CPA, and plan for your exit. It is worth mentioning that the larger the business the more likely it is that an SBA Loan will be involved. That means you will need to have at least three years if not longer of clean books and records.
2) Business Lease and/or Real Estate
Another key item buyers look at when buying a business in Orlando is the lease of the business premises for sale or the real estate that comes along with the business. How long is the lease? What are the restrictions? Is there a chance the landlord wants to sell or demolish the building the business is housed in and is the business protected if that happens? What about the real estate? Is the current value of the real estate worth way more than what the current business can support? Can a buyer get financing for the real estate? Does the real estate have any environmental issues that could prevent a sale or a buyer from getting financing? If you’re thinking, “What else can help me sell my business in Raleigh,” find out the issues surrounding your lease or real estate prior to marketing your business for sale.
It is always best to have a clean business working area and updated equipment when selling a business in Raleigh, NC. The cleanliness or presentation of the business is critical to a sale. A picture is worth 1000 words so to speak so the first impression your business makes can impact your deal.
3) Equipment and Assets Included
Your equipment and assets and their condition are a variable. They should be serviceable and not in immediate repair or replacement. Smart buyers are aware of the condition and the possible cash flow impact of the associated replacement costs should equipment not be up to snuff. This is especially the case where the business has premises or equipment that is regularly visited and seen by customers such as restaurants, bars, schools, rental facilities, manufacturing facilities, distribution facilities, and recreation businesses. If you want to do what you can to sell your business, make sure the equipment used in your business is updated. Make sure your equipment and your business premises are clean. When you think, “sell my Raleigh Business”, you should be presenting it much as you would a house going to market. If you were selling your house you would probably vacuum all the rooms, paint the walls, redo the floors and possibly upgrade some appliances and equipment. The same principle goes for businesses. Make your business look like a business a buyer would want to buy.
4) Future Potential of the Business
This one is surprisingly overlooked often by potential business sellers. Often times business owners looking to sell are often selling due to lost interest or energy and sales are starting to suffer. While business buyers are open to taking over businesses that are showing declining sales and profits it is not the most ideal position for a business seller to be in. If you think, what more advantages will help me sell my business in Raleigh…….. make sure to have a business that is showing viability and future potential. Business buyers want more than a business seller who claims they can earn more money by working harder. Ideally, Raleigh Business buyers want a business that already is working harder and they want that hard work to be reflected in stable or increasing sales, profits and opportunities.
If you would like more information on selling your business in the Raleigh or Wake County area please call the Business Brokers at Transworld Business Advisors, Steve Wright - Business Broker at 919.379.5776.
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