HOW TO SELL A BUSINESS
Six Step Plan
Over the next decade, six out of ten U.S. business owners plan to sell their companies - a noticeable increase over previous years. Many are baby-boomers, with an eye on selling their businesses to fund their retirement and as a result sale preparation and exit strategy are high priorities.
Start taking steps today to prepare your business for sale so you can maximize your long-term value and create a more profitable company.
STEP 1 Deciding To Sell Your Business
The decision to sell your business can be life altering. The first step in selling a business is self-discovery of your motivations. Ask yourself why now? Have you achieved what you set out to accomplish? Is it for retirement or possibly just time to move onto a new venture in life? At Pinnacle Business Brokers, we want to support you in transitioning to a new stage in life with the comfort of knowing you did it on your terms.
Once the decision is made to sell, Pinnacle Business Brokers feel it is equally important to assist in finding the right buyer. Efforts you’ve put into building your business have undoubtedly led to some level of emotional attachment. Most sellers want to see their hard work continue with new ownership to honor the commitment and dedication spent prior to the sell. After working so hard to build your business, we prioritize marketing to candidates who will continue your work and legacy.
STEP 2 Preparing Your Business to Sale
Prospective business buyers will want access to factual information. You need to have documentation supporting claims made during the marketing and sales process. You will need to organize your business records in a concise manner to give buyers a clear vision of your financial situation. Potential buyers value organization, in many cases expediting the process of receiving an offer.
STEP 3 Determining Valuation
When selling a business, it is important to understand what the right buyer is willing to pay. Care must be taken to ensure pricing is attractive, but provides you satisfaction in knowing top dollar was achieved. Matching candidates who have skills and proficiencies beneficial to your business present greater opportunity. At Pinnacle, we help value your company while setting realistic expectations of what the market will pay.
STEP 4 Marketing to Qualified Buyers
Pinnacle Business Brokers will use various resources to position your business to potential buyers. We will provide an analysis to determine strengths and opportunities for candidates. Additionally, we want to make sure buyers are qualified earlier in the selling process. Maintaining confidentiality is very important and we want to focus on finding the best available buyers.
STEP 5 Negotiation and Due Diligence
Negotiation is very typical when selling a business. Maintaining an open mind to the potential of various offer types is important. Buyers will want to perform due diligence after submitting an offer. Be prepared for additional questions after they seek consolation from outside sources regarding your business.
STEP 6 Closing
Once all details of the transaction are negotiated, we will schedule a closing date. Understanding the steps before, during and after the closing are simple, yet important. Pinnacle Business Brokers will assist by providing a checklist to ensure the process in painless and easy. Be prepared to transition to the next phase of life!
Pinnacle Business Brokers mission is to assist business owners in realizing the maximum value when selling their company. We also strive to help opportunity seekers find their ideal business and pay a price that fits their budget.