Each year, thousands of entrepreneurs across the United States opt to sell their businesses. In 2021, an impressive 8,647 businesses were sold. That means if you’re thinking of selling your small business, you’re in good company.
But finding a buyer for an existing small business is no small feat. In fact, most businesses that are put up for sale actually end up not selling.
If you’re thinking of selling your small business in Jefferson County, you’ll want to make sure you do it right. But where do you start?
This guide on how to sell your small business will help set you up for the most favorable outcome of the sale. Read on!
Know the Value of Your Business
Having a clear understanding of your business’ value will help you to set a realistic asking price and increase the chances of successful negotiations.
There are a number of different factors that can contribute to the value of a business, such as its assets, earnings, reputation, and market share.
A professional business appraiser can help you to assess the value of your company and give you an indication of what you should expect to receive. With an accurate business valuation in hand, you will be in a much better position to sell your small business successfully.
Many sellers make the mistake of waiting until the last minute to sell their small businesses, but that’s hardly the best time to sell.
Start early in the process to increase your chances of a successful sale. By giving yourself enough time, you can ensure that all the necessary paperwork is in order and that you have a good understanding of the current market value of your business.
This will help you to set a realistic asking price and avoid any last-minute haggling.
In addition, starting early gives you time to spruce up your business operations so that potential buyers can see it at its best.
With a little planning and preparation, you can maximize your chances of getting top dollar for your small business.
Hire a Business Broker
Hiring a business broker is one of the best things you can do when selling your small business. A good business broker will have a wide network of potential buyers and will be able to get you the best price for your business.
They will also be able to handle all the paperwork and negotiation involved in selling a business, which can be a daunting task for someone who is not familiar with the process.
Brokers can also help identify any warning signs likely to derail the sale and help you take the right action.
Review Your Contracts
Going through your contracts may not sound like the most exciting way to spend an afternoon, but it’s an important step in the process of selling your small business.
Reviewing your contracts will help you identify any areas that need to be updated or revised before you put your business on the market. This is especially important if you have any long-term contracts in place, as potential buyers will want to know about these before they make an offer.
Prepare Your Employees
Preparing your employees for the transition is critical. After all, they are a crucial part of your company, and you want to make sure that the sale goes smoothly for them as well as for you.
There are a few things you can do to prepare your employees for the sale of the business.
First, it’s important to be transparent with them about the process. Let them know what’s happening and why.
It’s also important to keep them updated as things progress. You also need to reassure them that their jobs are safe. No one wants to work for a company that’s in flux, so it’s important to give your employees some stability during this time.
Finally, you should try to create a smooth transition plan for the new owners. This will help everyone feel more comfortable with the changes and ensure that the business continues to run effectively.
Market Your Business for Sale
No buyer is going to come knocking on your door if they don’t know your business is up for sale. The key is to not only get the word out there but also to market your business in a way that will attract the right buyer.
Take the time to identify your target market. Who are you trying to attract? This will help you determine where to advertise and what type of marketing materials to use.
Next, create a marketing plan. This should include everything from online ads to print ads to PR campaigns. In today’s digital world, business buyers will often do their initial research online, so it’s important to have a strong digital presence.
Negotiate the Sale Price and Terms
Negotiating the sale price and terms will determine how much money you walk away with at the end of the sale. The goal is to get the highest possible price while also minimizing your liability.
To do this, you need to be clear on your bottom line and be prepared to walk away if the terms are not favorable.
It’s also important to have realistic expectations. Remember, the buyer is usually looking to get a good deal, so don’t expect to receive full value for your business.
Sign the Purchase Agreement
The purchase agreement is a document legally transferring ownership of the business from you to the buyer.
It is important to have a lawyer review the agreement before you sign it to make sure that all of the terms are fair and that you understand what you are agreeing to.
Once the agreement is signed, the buyer will typically pay a deposit and then have a certain amount of time to complete the purchase. At that point, ownership of the business will be officially transferred, and you will be paid the remainder of the purchase price.
Now You Know How to Sell Your Small Business
Knowing how to sell your small business can be a complex and daunting task. However, it’s important to take the time to understand the process and do things right. By following these steps, you can ensure that you get the best possible price.
We hope this guide has given you the information you need to get started.
If you need help selling your small business in Jefferson County? Get in touch with our team of expert business brokers today and learn how we can help you.Read More
Are you looking to sell your business in St Charles County? Whether you’re retiring, moving on to something new, or just ready for a change, selling your business is a big decision.
With over 8,647 businesses sold in the U.S. in 2021, there’s a lot of competition out there. But where do you start? How can you make sure your business stands out and sells quickly?
How do you get the best price for your hard work? And how can you be sure the transition goes smoothly? Here are a few tips to help you sell your business quickly in St Charles County:
Prepare Your Business for Sale
If you’re thinking about selling your business, there are several important things you’ll need to do to prepare. First, you’ll need to get your financials in order. This means gathering all the necessary documentation, such as income tax returns and balance sheets.
You also need to put together a sales deck or presentation that outlines your business’s key statistics, such as revenue and profitability.
You’ll also want to start thinking about what you want from the sale. What’s your ideal outcome? What are you willing to compromise on? By getting clear on your goals, you can start to formulate your negotiation strategy.
Getting all your ducks in a row will help you sell your business quickly and at a higher price.
Calculate the Value of Your Business
When you’re ready to sell your business, one of the first questions you’ll need to answer is, “how much is it worth?” Though there’s no single formula for calculating the value of a business, there are a few key factors that buyers will take into account.
One important consideration is the size of the business — larger businesses tend to sell for more than smaller ones. Another is profitability — businesses that are profitable, or have the potential for high growth, will usually command a higher price.
Finally, buyers will also look at the type of business and the industry in which it operates. Businesses in high-demand industries, such as technology or healthcare, will typically be valued higher than those in more traditional sectors.
By taking all these factors into account, you can get a better sense of what your business is worth. This helps you price it well for potential buyers.
Hire a Business Broker
Once you’ve prepared your business for sale, it’s time to start advertising it around. The best way to do this is to hire a business broker.
A business broker is a professional who will help you navigate the process of selling your business. They will help you find buyers, negotiate deals, and close the sale.
Working with St Charles business brokers is the best way to ensure that you get the best possible price for your business. They will also help you avoid common mistakes sellers make when selling their businesses in your industry.
Find the Right Buyer
When you’re ready to sell your business, it’s important to find the right buyer. The right buyer will be someone who is interested in your specific industry. They should also have the resources to make a fair offer for your business.
The right buyer should be willing to sign a non-compete agreement to protect your interests after the sale.
To find the right buyer, you can start by asking people you know in your industry if they know of anyone who might be interested in buying your business. You can also contact a business broker or an investment bank specializing in assisting with business sales.
Once you have a few potential buyers in mind, you can then begin negotiating the terms of the sale. With careful planning and preparation, you can ensure that you find the right buyer for your business and get the best possible price for your sale.
Be Honest With Potential Buyers
Honesty is always the best policy when selling your St Charles county business. It’s often tempting to try and make your business look more appealing than it really is, but this will only come back to bite you later on.
Be upfront about any potential problems or issues with the business and be prepared to answer any questions that a potential buyer may have.
If you’re not honest about the state of your business, the sale will likely fall through, and you’ll end up losing out in the end.
So, be honest with potential buyers from the start, and you’ll stand a much better chance of making a successful sale.
Know the Right Moment to Sell
Many business owners dream of the day when they can sell their company for a handsome profit. However, timing is everything.
Picking the right moment to sell can mean the difference between getting a good price and having your business languish on the market for months. If you wait too long, your company may lose value as it becomes outdated or less competitive.
On the other hand, if you sell too soon, you may miss out on important growth opportunities.
The best time to sell your business is usually when it is performing well and has potential for continued growth. If your business is struggling, you may be able to turn things around with a strategic plan and some hard work.
It is important to pre-qualify buyers before putting your business on the market. You don’t want to waste time dealing with tire kickers or people who can’t afford to buy your business.
The best way to pre-qualify buyers is to work with a reputable business broker in St Charles County. A good broker will have a database of qualified buyers and will know how to market your business to them.
Sell Your Business in St Charles County Today
Are you ready to sell your business in St Charles County? Whether you’re looking to retire, move on to a new venture, or simply want to cash out, ensure you follow our guide above.
Contact us today if you need any help or advice when selling your business. Our team of experts would be happy to help you through the process and get you the best price for your business. Give us a call today, and let’s get started.Read More
It takes between 30 and 90 days to sell a business in St. Louis. How long your business takes to sell will depend on factors like the business type, the business structure, and the location.
If you want to sell your business in St. Louis, it’s vital to know the steps to follow to ensure you find a buyer quickly. You need to keep in mind that selling your business is a process that might take some time.
Are you looking to learn more about what it will take to sell your business in St. Louis? Keep reading to learn the six steps you need to follow.
1. Determine Why You Want to Sell
The first step in selling your business is understanding why you want to sell. This knowledge will help you determine the future of your business and set a timeline for its sale.
Some business owners sell their businesses because they’re preparing to retire. Others might need to sell due to personal or health reasons. Some sell because they want to move on to something else.
Whatever your reason for selling, understanding your motivation will help you move forward with the sale. It will also make it easier to communicate your reasons to potential buyers.
2. Get Your Business Valued
The next step is to get your business valued. This will give you an idea of how much your business is worth and help you set a realistic selling price.
There are a few ways to value your business. One is to calculate the business’s net worth, which is the value of its assets minus its liabilities. Another way is to look at the business’s revenue and profit.
You can also hire a business broker to value your business. This is a good option if you’re not sure how to value your business or if you want a professional opinion.
The broker will determine the most accurate value for your business because they can access huge databases and use them for reference.
3. Prepare Your Financial Records
One of the things potential buyers will want to see is your business’s financial records. They’ll want to know things like your revenue, expenses, and profit margins.
So, before you put your business on the market, make sure you have your financial records in order. The records will give buyers confidence in your business and make the sale process smoother.
You should also have a business plan ready to show buyers. The plan will give them an idea of your business’s future and how they can grow it. If you don’t have all your financial records in order, now is the time to get them in order.
4. Find a Business Broker
You’ll sell your business faster if you rely on the expertise of business brokers. If you decide to handle the heavy lifting and ignore these professionals, there’s a high risk that your business won’t sell, or it won’t fetch a good profit.
A business broker will understand how to manage the sale process and ensure you get a higher profit. They’ll handle everything from determining your business’s value to preparing presentations for potential buyers. A broker will also bring a subjective perspective to the sale process because they’ve no emotional attachment to your business.
When choosing a broker, it’s crucial to pick someone who has experience selling businesses in your industry. This will ensure they have the knowledge and connections to help you sell your business. It’s also essential to choose a broker you’re comfortable working with.
5. Market Your Business to Find a Buyer
Once you’ve chosen a broker, it’s time to start marketing your business for sale. There are a few ways to do this.
Your broker will likely list your business on their website and other business-for-sale websites. They might also run ads in business publications and reach out to their network of buyers.
You can also market your business yourself. You can start by telling the people you know that you’re selling and running ads on your social media pages.
The key is to get the word out that your business is for sale. The more people know, the better your chances of finding a buyer.
6. Negotiate and Close the Deal
After finding a buyer, you should be prepared to negotiate a sale price. This can be a complex process, so it’s vital to have your business broker help you with the process.
Your broker will likely present the buyer’s offer to you and help you negotiate a counteroffer. They’ll also help you reach an agreement on terms such as the purchase price, payment schedule, and closing date.
Remember that you’re in control of the negotiation process. Don’t be afraid to ask for what you want and hold out for a fair price.
Once you’ve reached an agreement with the buyer, it’s time to close the deal. This is the time you’ll make a sale, and the ownership of the business will change hands.
The closing process can be complex, so it’s crucial to have an attorney help you with this. They can ensure the deal is structured correctly and that all the necessary paperwork is in order. After the deal is closed, you’ll receive the purchase price, and the buyer will officially own the business.
Sell Your Business in St. Louis Faster
Are you planning to sell your business in St. Louis? You’ll find the right buyer faster and increase your chances of success by following the above six steps.
If you’re serious about selling your business, you’ve probably searched the web for how to “sell my business” or “sell your business in St. Louis.” Look no further than Fusion Advantage. Our business brokers will help your small or medium-sized business find the best buyers in the St. Louis Area.
Contact us today to learn more about how we can help you with the selling process.Read More
Owning a business is a fundamental part of the American Dream. Becoming a business owner lets you take control of your work life and sell products and services you believe in.
But, owning a business is also a lot of work. You may have reached the point where you can’t handle this work anymore. Or, maybe you’ve made enough money that you don’t need your business income anymore.
In either case, you may consider selling your business. Selling a business can relieve you of many responsibilities and free up your lifestyle.
Yet, selling a small business is also a process that requires lots of work. You may not even know how to sell a business yet.
Luckily, you don’t have to go through this alone! Instead, we’ll provide you with this “selling a business checklist” in our guide below. Let’s jump right into it, shall we?
How to Sell a Business: Get a Valuation
The first step in selling a business is to determine its value. So, to begin, find a company that can provide a professional valuation to assess your business’ worth.
This valuation provides you with a means for gauging offers from prospective buyers. This way, you can get an idea of what to expect to net from your sale.
Valuations provide other information as well, such as:
- Business market position
- Financial situation
- Strengths and weaknesses
Several sources can provide a business valuation. You can go to your local accounting firm to receive this information or find specialized brokers. Remember that the valuation company needs the most current national data trends for your industry.
This knowledge ensures this company provides an accurate valuation of your business. Finally, it also helps if they have experience selling businesses like yours.
Prepare Your Books When Selling a Business
Once you get a business valuation, start preparing your financial records. Most buyers for businesses want three years’ worth of financial information. Sometimes, they may want more than this.
So, gather your records and ensure they’re as clear as possible. It’s best to have your statements reviewed or prepared by an accountant, too. An outside professional will usually organize your data in a more accessible way than internally generated methods.
Make sure you gather your tax returns, too. Sometimes, these documents alone suffice for your prospective buyer.
Also, remember that some expenses may not be representative of your business’s profitability. You may have infrequent expenses from the last three years that the buyer should exclude when analyzing your cash flow.
For example, your business may have moved to another location. If so, you may have moving expenses that wouldn’t recur in other years.
But, your business may have nonoperational expenses each year, too. For example, your business may pay for your personal cell phone or automobile lease. Business owners must provide supporting documentation in these cases.
Talk With Your Financial Advisor
In many cases, selling a business brings tax concerns for business owners. Because of this, you may want to consult your tax advisor to plan for your future.
Your tax consultant can help you understand your personal and corporate tax situation in greater detail. From there, you can determine your options when structuring your business bill of sale.
Organize Your Legal Documents
Prospective buyers won’t just want your financial information. They’ll also want to see your legal documents, including:
- Incorporation papers
- Licensing agreements
- Contracts with customers and vendors
These documents help buyers verify your business dealings and ensure they’re legit. So, make sure you gather them together. Also, check that the documents are current and chronologically ordered.
Determine Your Managerial Succession
Many small business owners take a hands-on approach to running their business. They play a significant part in their day-to-day operations and oversee their progress.
If that describes you, then consider who can replace you. All the paperwork in the world can’t tell you everything about your operation. Personal dynamics and operational methods are often unknown to new buyers.
So, it’s imperative to find somebody that the new owner can turn to for help after you leave. Who fits that description? Who knows your operation better than anybody else and has the judgment to help oversee it?
Make a Good Impression on Buyers
At some point, buyers will visit your shop to see how it runs. When they get there, what will they see?
Will it be an orderly business with streamlined processes? Or, will they see a business in chaos?
Buyers look for a company that runs orderly and well. These operations usually indicate that the shop has a skilled management team overseeing the business. As such, buyers feel more secure in their investments.
Know Why You Want to Sell
Buyers look for a company that runs orderly and well. These operations usually indicate that the shop has a skilled management team overseeing the business. As such, buyers feel more secure in their investments.
This caution usually leads to buyers asking why you want to sell. After all, why would you give up a well-run and profitable business?
So, be prepared to give an answer to that question. Make sure it’s well-articulated and easy for buyers to understand.
Build Your Legal Team
Finally, it’s best for businesses to assemble a legal team they can trust. Look for lawyers and accountants with expertise in mergers and business acquisitions. These people can help you draw a solid contract and business bill of sale.
Also, consider using a business broker or investment banker to represent your business. These professionals can help you through the business selling process from start to finish.
Find a Business Broker To Help You!
Selling a business alone can be challenging. There’s a lot of organization you have to do, and it may be tricky to know how best to do it.
That’s why a business broker can be a tremendous asset to you. Fusion Business Services provides an integrated process to help you understand every aspect of your sale.
We work with you through every step of this progress to ensure you get the best deal possible. If that’s what you need, don’t hesitate! Contact us today to learn more about what we can do for you.Read More
Perhaps the most famous bar in America is Cheers in Boston. The Cheers sitcom made the establishment more legendary than ever, portraying the ideal bar of people’s imaginations.
You understand how incredible that environment can be if you’ve ever owned a bar. But, just like Sam Malone, you may decide it’s time to sell your bar.
However, selling a bar is not as easy as it may sound. It requires a lot of work on your end, as you have to make sure the bar is a worthwhile purchase for a seller.
If you’d like to sell your bar business but don’t know where to start, don’t worry! In this guide, we’ll give you the essential information you need about how to sell a bar.
Preparation For Selling a Bar: Collecting Financial Records
When selling a bar, the first step is to get your affairs in order. First, collect your financial reports. The first thing any prospective buyer wants to know is that your bar business generates a profit.
Your financial reports alone won’t be enough to impress a buyer. You may not mind keeping all of your receipts in a small locker, but most buyers will be unimpressed with such a system.
These days, most businesses store their information in computer-based accounting systems. Start transitioning your books to electronic recordkeeping systems; this way, a buyer can trust that you store your records efficiently. In the mind of your prospective buyer, this means they won’t have to install an entirely new system right away.
Make Sure Equipment Runs Well
Another thing to do before you sell the bar is to ensure your equipment runs as it should. Even if you don’t use the equipment, it’s best to fix it or remove it. Having defunct items in a bar is a significant turn-off to prospective buyers.
As you examine your equipment, it’s also wise to remove any item that’s not a part of your sale. Over the years, you’ve likely accumulated personal items and memorabilia that make the place feel like home.
However, buyers assume that anything they see in the bar is a part of the sale. If you don’t want to part with these items, it’s best to move them out before buyers see the premises.
Iron Out Leasing Issues
When buyers see your bar, they expect to run it in its current location for the foreseeable future. However, for that to happen, your bar needs to have a viable lease.
If your lease runs out in a few months, or even in a year or two, it can halt the buying process. The buyer may not want to invest in a bar that they can’t guarantee will remain in place.
In many cases, this results in buyers turning their attention to more secure locations. So, before you talk with any buyers, make sure the lease still has plenty of time left on it.
Make Any Necessary Staffing Adjustments
This step may be the most important step in your preparation. Often, bar owners have strong relationships with their staff — you’ve come to see yourselves as a team.
However, a buyer doesn’t care much about your bar relationships. They want to know that your staff can run the bar smoothly and efficiently. If the answer is no, they may not buy the bar.
Alternatively, they may fire your staff without much mercy. So, if you have staff that underperforms, it’s in your best interest to let them go. If it comes from you, they may have an easier time recovering.
Interview Brokers and Choose Your Representative
The next step is to find a representative for your bar. This firm serves as the middle man between you and the buyer, relating information to both parties.
Perhaps the most critical service that brokers offer is valuing a business. When you interview brokers, it’s essential that you ask each candidate how much they believe your business is worth.
Generally, most candidates will give similar appraisals for your business. It’s often in your best interests to avoid outliers in these appraisals.
How do you know you can trust a representative in valuing a bar? It helps to check their credentials, such as the following:
- How many years have they spent in this business?
- What was the representative’s business background before selling restaurants?
- Are they licensed?
- How many restaurant listings do they currently have?
- How many restaurants have they sold?
- Do they have prepared contracts for buying a business?
- Do they have any references you can contact?
If they can answer all of these questions favorably, you can likely trust their judgment in valuing your business. From there, you’ll move to the next step.
Signing the Listing Agreement
Once you sign the listing agreement, follow these tips to help the process go more smoothly. First, run the bar as though you weren’t selling it. Don’t begin reducing hours or making other significant changes.
Likewise, keep the establishment clean and open for showings before and after hours. Return any phone calls or emails from your broker as soon as you can and check in with them for buyer feedback.
Review and Accept Offers
When it’s time to accept an offer you like, remember to work with the buyer. Give them a few wins in negotiations if you can handle them. Likewise, grant them the freedom to inspect the bar for health purposes.
Make sure your CPA is on board to offer any due diligence information as well. Lastly, we cannot stress enough that you shouldn’t make significant bar changes while under contract with a buyer.
If everything comes back favorably, all that’s left is to attend the closing and collect your check. At this time, you’ll turn over any keys, codes, and passwords to the new owner.
Start the Process of Selling a Bar
Selling a bar can take time. If you’ve determined to sell your establishment, start preparing today! Begin by collecting your financial records and making any necessary adjustments with the equipment.
Once you’re ready to find a representative, consider our services! We offer top-notch representation to bars and restaurants across St. Louis. We’ll be happy to add your establishment to our listings.
If that sounds like what you need, don’t hesitate! Contact us today to learn more about selling your bar business.Read More