It’s easier than you think!
There are plenty of reasons why you may be thinking of selling your business.
Perhaps you are ready for your Next Big Move–or maybe you wish to downsize or transition into retirement.
It could be that your business no longer dovetails with your lifestyle–for example, you now have a young family to consider.
Or maybe it just isn’t what you thought it would be!
Whatever the reason, you have two choices: Engage the services of a business broker–or sell the business yourself.
Both methods offer Pros and Cons: for example, a business broker understands the current market, can handle complex business deals, knows how to handle legal and financial issues, and probably has a list of possible buyers all cashed up and ready to go!
However, a broker will take 5-10% of the sale price as commission-and often has a minimum commission of $15,000-$50,000 when the business sells. Brokers may be more suited to larger business transactions but, for small to medium-sized businesses, it is more cost effective to sell it yourself.
So, how would it be if you could combine the best of both worlds? Imagine getting all the tools and support you need to find a buyer with a simple marketing system–and not paying a cent in commission!
That’s why more and more people are choosing to sell their businesses through companies such as Coast to Coast Business Sales.
This simple guide will get you started:
Find someone to advertise your business-like Coast to Coast Business Sales.
Established over 40 years ago, Coast to Coast Business Sales specialises in advertising private business sales, franchises and income producing properties.
Find out what is included in your package.
Ensure they can provide you with the tools you need–such as a Confidentiality Agreement and Business Profile. Do they engage professional writers and graphic designers to create your advert? Do they have a database of potential buyers? How and where will your business be advertised?
Determine your sale price.
This is probably the hardest part of selling a business. There are formulas that can be used to determine the most accurate selling price. Remember, your expectation may be higher because you have that emotional link to the business–and you have put in all the hard yards!
Most business valuations are based on Fair Market Value–but a good valuer will look much deeper than simply the balance sheet!
Start advertising.
This is obviously a key factor in finding a buyer! Using a no-commission organisation such as Coast to Coast Business Sales will ensure that as many prospective buyers see your business as possible.
Your package can include advertising across various platforms–including printed media (Magazine),several different websites and social media.
Accepting an offer and negotiation.
Once you have found a qualified buyer, there is likely to be some negotiation. This is where a Private Sales Company such as Coast to Coast can really help–along with your accountant and solicitor.
As well as price, the negotiation period also considers the settlement period, training, hand over details, staff and more.
Remember, you are in control, and you don’t have to accept the first offer you get!
Contract For Sale.
Based on your negotiations, your solicitor or a conveyor can now draw up the sale contract.Remember, the sales process starts long before you advertise your business! To get the best possible price, you need to ensure your business is in good shape–and you have all the necessary documents in order, such as your financial records, commercial information, operational and safety documents, legal information and more.