The topic today, is selling your small business. This really is a serious wide topic, so I’m just going to give you some bullet points, to start off with. Probably the main thing definitely, including price, or whatever, is the true motivation, for wanting to market the business. Have you been just seeking to get money? Or are you currently trying to retire? Spend more time with the grandkids? Rent a sailboat, and go across the Caribbean for a few months? Your true motivation is a key thing, because the final thing you intend to do, isn’t be motivated, and get into a deal, and then back from the deal, at the final minute, so assuming you are motivated, the first thing you probably might like to do, is visit a person that you trust, to begin considering what is the business worth.
I strongly suggest conversing with people which have lots of experience, not just one deal within the last ten years, as well as three deals within the last ten, but somebody who works on the market, so either a business broker, or perhaps a transaction attorney, an accountant who has lots of experience with transactions. Please don’t work with people that not have experience with transactions. If it’s a family lawyer, or a family account that never does business deals, it’s just like likely to a base doctor, to have brain surgery. You wish to work with people skilled with transactions, so number one, is determining, what’s the worth of your business? Number 2, will be hiring a business broker, or maybe an attorney, somebody like this, that has transaction experience, having an agreement with this person to represent you.
That individual will then package your business. What’s the vital information for your business? Is there some financial statements? Hopefully, there are, because it’s very difficult for a buyer to have interested in the commercial, if there is no numbers for the business. Is there any special permit, or are there any leases? Is it a retail store that is highly influenced by the lease? What’re the lease amounts? Those can get into the package.
If it’s a liquor store, or perhaps a bar, or something like this, that will require an ABC license, that needless to say, should be in the package. After the package is complete, now your representative is preparing to show your business to buyers, so as a business broker, I would advertise your business on a lot of websites that I know. I’d also tell my fellow agents about your business, so they can tell the people which they know, all in a confidential way, about your business. Get them excited about it. Then, when we do get a buyer, we write an offer. After the offer is agreed upon, people agree on the purchase price and the many terms and contingencies, then we feel the due diligence process, and if that goes well, you can close the deal. Those are the actual steps to selling your small business.