Selling a business is very different from selling a house. You cannot put a For Sale sign in front of your business. Selling your business is a confidential transaction to not upset employees and customers. A business broker can be an invaluable asset in this process. The right broker can help with valuing the business, the right marketing, negotiating the deal appropriately, work with landlords, vendors, attorneys as well as loan officers to make sure the deal closes. The average time for a business to sell is 9-12 months.
High level overview of sales process for a business:
Recasting Company Financials
Formulate a Marketing Plan
Interview and qualify prospects
Get Confidentiality Agreement
Show prospect the business and allow possible buyer and seller to meet
Work with prospect on interest and concerns
Offer and counteroffer
Negotiation with Landlord and Franchisor (if applicable)
Work with loan officer, closing attorney, insurance agents and other professional in order to have a closing.
There is a great deal to think about when deciding to buy an existing business, franchise or even start one from scratch.
We can help you make that decision as well as make sure you find the right industry and at the right price.
The first step is to ask yourself these questions:
1. Why do I want to go into business?
2. Where and how much time do I expect to work-owning a business is more than a 9-5 M-F commitment?
3. Identify your interests?
4. Consider your talents-what drives and motivates you.
5. How much do you have to invest and where is the investment coming from (loan, savings, 401K, other)?