Is It Time to Sell?

When it comes to selling a business, many owners have more questions than answers. One of the first things to consider is the current commercial market. The state of the market will have a dramatic impact on the time it takes to sell, and the maximum price for which it will sell. Waiting a year or two may be wise, but how will business owners know that information?

Professional Help

When owners initially begin to think whether or not to sell my business, it is time to consult with a business broker. Whether you want to know about selling your business in Austin TX, or selling a business elsewhere, finding an experienced broker is the professional help that is needed.

The process is much more complex than putting a house on the real estate market and there are several steps to take. A broker can handle all the aspects of selling a business, while the owner focuses on operating the business and getting it ready to sell at the highest price possible. Buyers will be seeking an organized business that can continue to thrive under new ownership.

Benefits of Utilizing a Broker

A broker has the resources to reach the largest possible base of buyers. Investors in another state may be interested in buying certain types of businesses. A business owner will not be aware of that fact, but a broker will be.

While most owners have a general idea of what their businesses are worth, they have no idea how to conduct a proper valuation. There are hundreds of variables that contribute to a complete and accurate valuation which effect the asking price. Neglecting to recognize some of those variables can mean a loss for the seller.

Steps Sellers Can Take

In order to expedite the sale of the business and be in a position to ask for the maximum fair market value, sellers can make some crucial changes. Sell off any unused assets or equipment and assets used for personal use. This will improve cash flow and present a lean business to buyers. Make sure financial documents are organized and readily available. Include tax returns, profit and loss statements, and a list of assets.

It is also helpful to have policies and procedures, job descriptions, pay rates for employees, and a complete list of inventory for buyers to review. Develop key staff members who can make sure the business is operational after it is sold. No buyer will purchase a new business if the only person who knows how it runs is the seller.