Phoenix Affiliates



tips & techniques for selling your business

follow these 10 commandments to avoid wrecking the deal!


1.  Place a Reasonable Price On Your Business

An inflated figure either turns off or slows down potential buyers, rely on your business broker to arrive at the best "win-win" price.  An "unrealistic price" discourages many buyers from even looking at a business.


2.  Carry on "Business As Usual"

Don't become so obsessed with the transaction that your attention wavers from day-to-day demands, affecting sales, costs, and profits.


3.  Engage An Expert Business Broker

A breach of confidentiality surrounding the sale of a business can change the course of the transaction and damage a business in the future.


4.  Prepare For The Sale Well In Advance

A good business broker will prepare an offering portfolio for the business to have ready for qualified buyers.  The business owners can help in the process by "housecleaning" - as well as a literal sprucing up of the facilities.


5.  Anticipate Information The Buyers & Their Financing Sources May Require

In order to obtain financing, the buyer will need an appraisal on assets.  Lenders will require at least three years of tax returns and the most recent financial statement.


6.  Achieve Leverage Through Buyer Competition

A good business priced properly many times will create interest from several buyers and create a competitive situation.


7.  Be Flexible

Don't be the kind of seller who wants all cash at the closing, or who won't accept any contingent payments or an asset transaction.  Depend on the advice of your business broker - their knowledge of financing and tax implications.


8.  Negotiate; Don't Dominate

You're used to being your own boss, but be prepared to learn that the buyer may be used to having his way too.  With your business broker's help, decide ahead of time "when to hold and when to fold".


9.  Keep Time From Dragging Down the Deal

To keep the momentum up, work with your business broker to be sure that potential buyers stay on a time schedule and that offers and counter-offers move in a timely fashion.


10.  Be Willing To Stay Involved

Even if you are feeling burnt-out, realize that the buyer may want you to stay within arm's reach for a while.  Consult with business brokers to determine how you can best effect a smooth transition.


sellers

  • Our office will provide the following services to you in the process of selling your business:

  • Compile our Confidential Profile describing your company to the market place.  This will include recasting your financial statements to accurately reflect the true earnings of your business.
  • Prepare a business valuation conducted by a third party CPA firm specializing in Business Valuations.
  • Present, through our finance department, your business to the small business administration, or other appropriate financial institution for pre-approval.
  • Post your business on the appropriate websites through our Marketing division, including the interactive version of the Wall Street Journal.
  • "Push" your business to our local, regional, national and international brokers through our broker's network.
  • Begin print and trade journal advertising if appropriate.
  • Present your business to the several potential buyers we have in our database who are looking for a business like yours.
  • Take charge of the negotiation process to get the highest possible price for your business and on the terms acceptable to you.
  • Assist you in the due diligence phase of the sale.
  • Be present at closing to handle any last minute problems that may arise.
  • Always be available if you have any questions or concerns throughout the complete process!!

 

Get started by contacting us ...