Man-Up - Sell Your Business!
Posted by Kipp Krukowski on Sun, Mar 06, 2011 @ 05:06 AM
To sell your business takes some guts. You put your heart and soul in your business so selling your business may be difficult, it may feel like you are losing a part of you. Yes, to sell your business, you will have to ‘Man-Up’. But starting your business took even more guts, but that was a long time ago.
When you think about it, you didn’t get much support from friends and family when you started your business. The banks didn’t give you any help either, so during the early days money was tight. Cash flow was always an issue, but somehow through hard work, maybe some luck, the business grew. You had to ‘Man-Up’ during those times, long before the term ‘Man-Up’ was used.
Fast forward to today. Your business is doing ok. Sure, with some belt tightening you could be showing more profit. You have thought about selling your business in the past. In fact, a day doesn’t go by that you don’t think about selling your business. You know it’s time to sell your business but selling your business is something new to figure out and that takes time.
Yes, it takes some effort to sell your business so you will have to ‘Man-Up’ if you want to make it happen. First thing, you want to be fairly compensated for the business you have built. You also want a seamless transition for your employees and customers. Everything needs to be confidential but you know you will need to disclose your financials.
So, like many business owners thinking about selling a business, here are your concerns.
You have done a good job of minimizing your tax liability by how you operated your business. Ok, maybe your accountant deserves some credit for the write offs and keeping your taxes low. But here are your concerns:
Q) By keeping the profit in my business low, will it keep the selling price low?
A) No. Your financials will be recasted or ‘normalized’ to add back discretionary expenses like travel and entertainment and this will show the prospective buyer a greater profit potential. Don’t worry, this information does not get shared with the IRS.
Q) How do I determine the fair market value for my business?
A) Leave business valuation up to the experts. The price you spend to get a professional 3rd party valuation will be the best money you spend to sell your business.
Q) There is a lot for a new owner to learn taking over my business. What commitments do I have to make to train the new owner?
A) Selling your business may require you helping the new owner for some period of time. This may be a short term employment contract for you or some commitment to help the new owners as part of the deal.
Q) How expensive will it be to sell my business?
A) The broker fee will be 10% of the sales price. Depending on the complexity of the deal, a fee for an attorney may be added to that.
Q) How long does it take to sell my business?
A) Expect 6 to 18 months to sell your business. You only need one buyer and if the business is priced and marketed correctly, it will sell.
Q) How can I advertise my business to get a qualified buyer?
A) That’s what we do at Confidential Business Sale!
So if now is the time to ‘Man-Up’ and sell your business, take the first step with Confidential Business Sale, Inc. today to discuss selling your business!
Written by: Jeff Young, Business Intermediary, Confidential Business Sale, Inc.
