Selling Your Business? Do-It-Yourself is Risky Business!
When the owner of a business makes the decision to sell, he or she is taking a giant step that involves the emotions as well as the marketplace, each with its own set of complexities. Those sellers who are tempted to undertake the transaction on their own should understand both the process and the emotional environment that this process is set against. The steps outlined below are just some of the items for a successful sale. While these might seem daunting to the do-it-yourselfer, by engaging the help of a business intermediary, the seller can feel confident about what is often one of the major decisions of a lifetime.
1. Set the stage.
What kind of impression will the business make on prospective buyers? The seller may be happy with a weathered sign (the rustic look) or weeds poking up through the pavement (the natural look), but the buyer might only think, "What a mess!" Equally problematic can be improvements planned by the seller that appeal to his or her sense of aesthetics but that will, in fact, do nothing to benefit the sale. Instead of guessing what might make a difference and what might not, sellers would be wise to seek the advice of a business intermediary--a professional with experience in dealing regularly with buyers.
2. Get the record(s) straight.
Although outward appearance does count, what's inside the books is even more important. Ultimately, a business will sell according to the numbers. The intermediary can offer the seller valuable assistance in the presentation of the financial information.
3. Weigh price against value.
All sellers want to get the best possible price for their business. But they also need to be realistic. To determine the best price, an intermediary will use industry-tested pricing techniques that include cash flow analyses and historical data based on sales of similar businesses.
4. Market professionally.
Engaging the services of an intermediary is the key to the successful marketing of a business. The intermediary will prepare a marketing strategy and offer advice about essential marketing tools--everything from a business description to media advertising. Through their professional networks and access to data on prospective buyers, intermediaries can get the word out about the business far more effectively than any owner could manage on an individual basis.
5. Keep your eye on the ball.
Your highest value as a business owner is running your business and keeping it growing and profitable.
