10 Questions To Ask

Selling Your Business? Follow These Ten Steps to Successfully Manage the Sales Process.

1. Place a reasonable price on your business.

Since an inflated figure either turns off or slows down potential buyers, rely on your business broker to help you arrive at the best "win-win" price. For helpful tools in determining preliminary pricing for your business visit our Seller Forms

2. Carry on "business as usual."

Don't become so obsessed with the transaction that your attention wavers from day-to-day demands, affecting sales, costs, and profits. Since the selling process could take as long as a year, the buyer needs to keep seeing a healthy business.

3. Engage experts to insure confidentiality and keep the transaction all business.

A breach of confidentiality surrounding the sale of a business can change the course of the transaction. Expert intermediaries can channel the process and the parties involved to keep the sale within safely silent bounds. In addition, all too often, the process becomes much too personal for the seller when a skilled intermediary is not involved and prospective purchasers question the policies or finances or price of the business.

4. Prepare for the sale well in advance.

Be sure your records are complete for at least several years back and do all pertinent legal or accounting "housecleaning"--as well as a literal sprucing-up of the plant or store before you put your business on the market.

5. Anticipate information the buyer may request.

Buyers want to know what they are purchasing. Requests for asset lists, inventory lists, customer lists (usually one of the very last items of due diligence for confidentiality reasons and protection of the sellers business), bank records, tax returns, depreciation schedules, employee information and lease information are common requests to get your house in order and have these documents readily available.

6. Achieve leverage through buyer competition.

This can be tricky; you are wise to let your business broker, as a third party, create a competitive situation with buyers to position you better in the deal.

7. Be flexible.

Don't be the kind of seller who wants all-cash at the closing, or who won't accept any contingent payments or an asset transaction. Depend on the advice of your intermediaries--their knowledge of financing and tax implications-- to keep the deal sweet instead of sour.

8. Negotiate; don't "dominate."

You're used to being your own boss, but be prepared to learn that the buyer may be used to having his way, too. With your business broker's help, decide ahead of time when "to hold" and when "to fold."

9. Keep time from dragging down the deal.

To keep the momentum up, work with your intermediary to be sure that potential buyers stay on a time schedule and that offers move in a timely fashion.

10. Be willing to stay involved.

Even if you are feeling burnt-out, realize that the buyer may want you to stay within arm's reach for a while. Consult with intermediaries to determine how you can best effect a smooth transition.

Resources

What our clients say...

“Charleston Business Brokers did a phenomenal job for us in getting the deal done. We received a higher price and a buyout that was properly structured that both parties agreed on. They are full of useful information.”
Shawn West, Charleston, SC

“Charleston Business Brokers is, quite simply, the best business brokerage firm in not only the Charleston Region, but the entire State of South Carolina.”
Doug Lifton, Kiawah Island, SC

“I have worked with brokers across the United States in the sale of my businesses and I can honestly say that Charleston Business Brokers delivered the highest level of service I have ever received from a brokerage group.”
Larry Turisk, Houston, TX