Selling Your Business How to Find a Buyer

Selling your Business How to Find a  Buyer

Looking For a Business Buyer

You have decided you want to sell your business.  How do you find a buyer for your business?

When a business has been in existence for many years, 10-20-30-40+ years it is not uncommon for the business owner to be approached about selling his/hers business. Or it is not uncommon to “hear about someone interested in buying the business” or have someone express “interest in buying the business”.    I have seen and experienced this as a business owner and as a business broker. So one may think  “if these  people are interested in buying the business and I’m not even trying to sell it, I think it may be very doable to find a buyer when I am ready to sell my business.” But like a lot of other complex processes, “the devil is in the detail.”  Often  , when ready to sell your  business,  it turns out the person  or competitor, or strategic buyer prospect that was interested in the business 1,2, 3 years ago, is no longer interested- their situation has changed.  Or the guy that said he knew someone  that was interested in the business, doesn’t have the resources to consummate a deal. So how does a business owner find a buyer for the business. 1. Try to find a buyer on his/her own. 2. Hire a Business Broker to find a buyer.   Neither options are guaranteed. What is generally not known by one trying to sell a business is that MANY  businesses that actively try to sell their business DO NOT SELL.  Industry statistics show that well over 1/2 of all businesses that actively try to sell actually do NOT  transition the business to a new buyer. But it is with little doubt that hiring a qualified business broker greatly increases ones odds of finding a buyer.  It is my opinion that a significant reason why utilizing a business broker is the simple fact that most business owners already have their hands full running their business.  And then to add  the components of selling a business to their day is barely doable at best. Marketing the business, vetting out buyer prospects, tire kickers, not disclosing the confidential component of the sale are just a few responsibilities that are easy to do  while continuing to run their business.   Often there is not enough hours in the day to get all that done and run the business. A business broker is able to have “generic dialogue” with competitors and strategic buyers without disclosing the name of the business.  If  Mike from Mikes Towing approaches ABC towing about buying their business, then ABC business knows Mikes Towing is for Sale. If Scott from XYZ  Business Brokerage approaches ABC Towing about a Towing business in the Jacksonville Florida area- confidentiality is maintained. But as a Business Broker we market  looking for business buyers across many different platforms, often searching locally, regionally, nationally and internationally.    So often business buyers are from “Somewhere else”.   Also a business buyer is someone that buys a business.  About 9 out of 10 people that approach about an interest in buying a business don’t buy a business.  They may one day, but that may not be this year or next year.  They are prospective business buyers.- As a business Seller you are looking for a Business Buyer. I personally have bought  several business over the last 25 years. I have made the decision to buy a business- found a business that met my goals and then concern myself greatly if I cannot effectively acquire the business   Many “Business Buyers” looking for a business do not ever make an offer on a business , or buy a business.  They may be a perpetual business buyer prospect, or they may truly be ready to take the next step and be a business buyer. Knowing the difference between a prospective business buyer and actual business buyer can be the difference between an effective sale or a frustrating  time demanding process . For More information on Selling a Business or Buying a Business  Scott M Messinger (239) 770-2421

Is Selling Your Business The Right Choice For You?

Is Selling Your Business The Right Choice For You?

Is Selling You Business the right choice for you ?

When a small business owner is considering the sale of his or hers business there can be an extensive search to find answers regarding the process.  Before one finds the answers or proper information as it relates to the sale of a business, you must know the questions to ask.  Most small business owners are not born with the knowledge on how to sell their business.  Furthermore most small business owners have not sold a business before ,therefore gaining knowledge and information on the best way to sell their business is essential.

Again each business is different and each business owner and business owner situation is different, but below please find a list of questions to consider that may be helpful in the process of selling a business.

        Are Your Ready To Sell Your Business?

Are you ready- Are you emotionally ready to sell your business?- Almost 20 years ago when approached about potential buyers looking to buy my business, I asked my CPA for his advise which I followed and still subscribe to today.  He told me “You will know when you are ready”.  I tell  those I advise today if you wake up one day and think its time to sell your business- take some time and reconsider.  If you wake up 30 days+ in a row feeling you want to sell your business- then maybe its time to sell your business.

Is Your Business Ready?

Is your business ready for you to sell your business?-  Are your financials in order.  In other words do you have accurate financial records that are both accurate and understandable.  Do you have systems and or policies and procedures in place and documented?

                What Is Your Business Worth?

What effect does the amount of money you would get from the sale of your business have on your decision. Is it your complete retirement money?  Is it enough to allow you to exit to pursue your next venture?  What is the difference between what you need the value to be and the actual value.

Getting Others To Help You Sell Your Business

DO you hire a business broker to sell your business?   Can your CPA or your attorney sell your business?  Can you sell your business yourself?  I am a business broker and sold my own business and also purchased multiple businesses as a business owner.  Yet after the sale of my business I chose to be a business broker as I recognized the value and confidentiality a business broker can provide. Furthermore most business owners are busy running their businesses before they add they task of trying to sell their business to their work day.

                Should You Improve Business Before You Sell It?

DO you buy that new truck?  Do I spruce up the inside of my stores?  Do I hire that new employee?

I always advise business sellers to run the business as you will own the business for the next five years.  There is a chance the business will not sell or take a long period of time.  Continue to make your business better and attempt to add value.  Certain Capital expenditure  should be carefully weighed, but continue to try to improve your business.

How Long Will It Take To Sell Your Business?

It seems that typically it will take longer for a business to sell than a business owner may originally think.  I suggest the 1 year time frame as a guideline but again all businesses are different and asking price for a business can strongly influence the time it takes to sell a business.

 

My Personal Advice When Selling Your Business

Every business is different and every business owner  and business owners situation is a little different.  But there also is some commonality shared.  My perspective on this matter is that of one that has started a business, personally purchased several businesses, sold my own business and have helped others buy and sell businesses.

I understand and respect the decision of selling a business is a very important and complex decision and process.  It is NOT all about the money.  The sale of a business  involves multiple facets including  price, emotions, financing,  lifestyle, families  and personalities.

When considering if it is time for you to sell your business spend some plenty of time seeking some answers, but begin with the questions most important to you.