When it comes time to sell your business, you might be tempted to go it alone to try to save money. Unfortunately, that could lead to some potentially harmful roadblocks in the long run. No matter how much you know or think you know about selling a business, it's always best to consult a trusted and experienced business advisor when thinking about selling. Here are just a few reasons why:
Selling Becomes a Full-Time Job
Selling a business can be a time-consuming project that can take up a lot of your time and energy. Fielding inquiries, vetting buyer prospects, answering questions, and providing documentation and financials is all a part of the initial process to find a buyer. Additionally, and unfortunately, when selling a business often you can attract a large group of inquirers who are unqualified. Many business owners that try to sell on their own will report this is the one thing that surprised them the most. They were surprised with how much time they spent with people who clearly did not have the ability to buy. It can be a chore to weed through and vet those prospects. As a result, you risk not devoting as much time to managing your business, and it could suffer. This may even cause your business to lose value in any potential sale. However, if you trust in a business advisor to handle the sale for you, not only are you using someone who does this specifically for a living, you will be freeing yourself up to manage your business more actively and keep it thriving.
Qualified Buyers are Hard to Find
Unless you already have someone interested in buying your business, finding a qualified buyer can be difficult. If you advertise your business openly, you notify your competition that your business is for sale. You also risk scaring off employees, vendors, and customers. Meanwhile, a business advisor is well-equipped to market your business confidentially. Additionally, they already have a network of potential buyers who might be interested in your business. Your business will be broadcast to a network of buyers and brokers across the country. Your advisor can help you find the best possible buyer without exposing your plans to the public.
There is More to the Process than Just Finding a Buyer
From a “time spent” perspective, veteran business brokers estimate that the total time spent completing a sale is around 10-15% in the marketing and locating a buyer and the rest of the total time spent focuses on getting through offers, negotiations, due diligence, closing and transition. These steps might not be your strength or something you are familiar with. Your Transworld broker will help you the entire process, not just finding the buyer….actually selling the business!
You Could Under- or Over-Value Your Business
Business valuation is a specialized field, and it's easy to set your initial price too high or too low if you're unfamiliar with valuation methods in your specific industry. If your price is too high, you'll scare off potential buyers and lose them with an unfavorable first impression. If it's too low, you may generate interest, but ultimately, you'll leave money on the table. A business advisor who is familiar with valuation can help you determine the best initial price for your business. Keep in mind that this is just the initial price; you can always adjust later to get the most out of your sale as the process progresses.
Whenever you work with a trusted and experienced business advisor like Transworld to sell a business, you give yourself the best possible chance get the most out of your sale and getting the sale closed. A Transworld business advisor can advertise your sale professionally and confidentially, and act as your advocate through marketing, negotiations, closing and transition. For more information contact us at www.sellmybizco.com or www.tworld.com/locations/colorado/about