How to Sell a Business without a Broker
how to sell a business without a broker
WE WILL HELP YOU GET TO WHERE YOU WANT TO BE NEXT…
When you are ready to sell your business you will quickly discover that it may well be the most difficult thing you have ever done. How to sell a business can be a diverse and complex process that needs a knowledge of sales, marketing, real estate leasing, writing contracts, accounting, finance, human psychology and much more. Most business owners who attempt to sell their business do not have the scope of expertise it takes to sell their business successfully and become disillusioned and disappointed with their results. Find out how to sell a business.
- When learning how to sell a business, the biggest problem is determining the real value for their business. Without the proper training and background in accounting, business brokerage or a certification in business appraisals, a seller is unlikely to have the knowledge or the tools to determine the fair market value of their business.
- The Businesses that get SOLD quickly are those that have clean and well-maintained books and records. Preparing a business to take to market involves planning and the gathering of financial records that can facilitate the valuation and support the eventual selling price.
- Many sellers believe that their business can sell in a matter of weeks or months causing reluctance to sign a 12-month standard broker listing agreement. The overall business selling cycle can take from two to six months and often as much as a year depending on the size of the business, the quality of the books and records and whether or not a business broker was used to facilitate the transaction.
- Most business owners think that they will get their asking price. Even with seasoned and skilled representation, you will only likely get 85% to 90% of your asking price and that figure can drop dramatically if you have not maintained good verifiable books and records to support your price and do not have the expertise of a skilled business broker to represent your interests.
Pre-qualifying and evaluating prospective buyers to make sure they are financially qualified is a significant part of the selling process so as to save time dealing with unqualified time wasters.
Hiring a professional business broker can increase your chances of selling your business at a higher price and in a more realistic time frame because they know the market and they know what it takes to get the best results while limiting your stress and risk factor.
- At Business Broker World, we have assembled a seasoned, experienced and skilled team that will get your business sold fast so that you can enjoy your retirement with your family or pursue whatever other new adventure you have planned.
- Our team is already tapped in and connected. We know what buyers are looking for. We already have the connections you need for knowledgeable investors and eager buyers. Our lifeblood is the successful sale of your business and we have many years of experience in presenting businesses in the best light possible.
- Valuation is a first and critical step in selling your business. The truth is business owners have no idea what their business is worth and have no expertise in determining its value. It is a challenging process and most owners get it wrong. They either think their business is worth more than it is or they seriously undervalue it with regard to present market conditions. Our team can tell you exactly what your business is worth using industry tools and technology.
- The preparation process involved in getting your business ready to be sold can be daunting for those sellers who have never done it before. Having an experienced CPA to work with will alleviate much of the stress and save time in preparing and producing the documents needed to create the business valuation.
- One of our licensed business brokers can help eliminate the anxiety and stress associated with such an important facet of your life in business. We can help you to gain focus on exactly what you want, what you need to do, who might be the perfect buyer or investor, and on where you see yourself a year from now.
- Our experienced team at Business Broker World is not a cost.
We are an investment in your future…
OUR SELLING PROCESS
Just like everything else in the world that involves processes and procedures, the business of selling a business involves a step by step process. The reason most private sellers trying to sell their business on their own without a broker seldom succeed is they do not follow a process. At Business Broker World our success is measured in terms of our performance. We recognize that following an orderly step by step approach is what ultimately attracts buyers and gets businesses sold.
If you are a seller interested in selling, review the following overview of the steps involved.
- You have decided to sell and you contact us or we contact you as a result of your response to our B2B direct marketing. It is important to realize that all communication between the seller and business broker is strictly confidential and the decision to work together is built upon mutual trust. The initially scheduled meeting is designed to get to know some background information about the business owners, to gather preliminary information about the business and to discover the reason why the seller wants to sell.
- A Valuation of the Business to be SOLD is a critical part of the sales process. Therefore, at the end of the initial meeting with the seller, the business broker will provide a seller with a list of certain financial records necessary to conduct a valuation of the business. Such financial documents generally include:
- Tax Returns for the prior 3 years(fewer years if the business is less than 3 years old) If Tax Returns for the prior year are still not ready or have not yet been filed, a Profit& Loss can act as a temporary substitute.
- A Profit & Loss YTD(year-to-date)and Gross Sales YTD
- A Balance Sheet
- A List of Fixtures, Fittings, and Equipment (FF& E) to be included in the sale and an assessment of depreciated value based on original cost.
- An assessment of inventory at cost to be included in the sale
- Once the financials have been provided by the seller and the business is valued by the broker, the business listing agreement will be signed between the business owner and the business brokerage.
- The Business Broker will then organize photography and videography of the business(as appropriate). Extensive work will follow to create an Executive Marketing package, which eventually will be shared with prospective buyers, describing the business background, discussing the company’s products or services, including a financial summary worksheet and addressing the future upside opportunity for the business.
- The Business for Sale will be posted on several major online platforms and further distributed to hundreds of advertising venues.
The Business Broker will coordinate all buyer inquiries, pre-qualify prospects, provide information about the business listing, negotiate all offers, draft any letters of intent or contracts, oversee the due diligence and schedule the attorney for closing.
We help to know how to sell a business today!
Business Broker World
Business Broker World is the Premier Restaurant Business Brokerage and Commercial Real Estate Firm in the South West Florida. Nobody SELLS more restaurants than Business Broker World. We specialize in the sale of existing restaurants and operating businesses, Commercial Real Estate leasing, and investment property.
how to sell a business without a broker how to sell a business without a broker how to sell a business without a broker how to sell a business without a broker how to sell a business without a broker how to sell a business without a broker how to sell a business without a broker