10 Tips on How to Sell a Business

1.  Sell Your Business The Fastest At The Highest Possible Price

You only get one chance to sell your business; do it properly from start to finish. The longer your business is on the market, the more the price will drop. Trying to sell a business yourself can result in an unsold business or receiving a lower selling price than is possible. Finn Business Brokers are experts in business sales.

2.  Detailed Information Preparation

Once you make the decision to sell your business, it immediately becomes a product competing against thousands of other businesses for sale. Prepare information about your business performance that can be presented to potential buyers and their banks. The Finn Business Sales Business Profile Document and Due Diligence Package is the foundation to the marketing of your business containing everything necessary for potential buyers, their accountants and banks.

3.  Get A Professional Appraisal

A professional appraisal is one of the most important aspects of selling a business. Pricing your business correctly allows banks to lend your buyer the right amount of money. If you have not correctly appraised your business, the bank may not lend your buyer the money needed, and the deal can fall over. Get An Appraisal >

4.  Marketing Your Business

The first three months that your business is on the market is crucial. Advertise heavily, but remain conscious of how much you are spending; you don’t want to unnecessarily spend your marketing budget. The Finn Marketing Program is the most comprehensive on the market designed to advertise your business extensively online, in print, to our buyer database and at Finn Seminars.

5.  Keep Sales Growing

Just because your business is on the market, does not mean the day-to-day operations stop. You want to handover the best performing business to your new buyer. Ensure that you are spending enough time at your business to guarantee your sales stay constant. Most business owners don’t have enough time to manage the sale of their business and continue to run the business. Finn Business Brokers are involved in every stage of selling your business.

6.  Maintain A Relationship With Your Broker

Maintaining a positive relationship with your business broker will make the entire selling process much smoother. Your business broker will give you advice about selling your business, ensure all specific business guidelines are met and have a database of shared knowledge. Ruining this relationship can drastically decrease the sale of your business.

7.  Tell Your Staff About The Sale

Your staff deserves to know about an ownership change that is going to occur sometime in the near future. Tell your staff just as your marketing commences. It is best to tell your staff face-to-face in a group meeting. Do not inform your staff by email, and do not let the news leak out gradually. Your Finn Business Broker has experience with many other business sales and can help you to decide when to deliver this information.

8.  Consider A Silent Listing

A silent listing is ideal if you are in no hurry to sell. It is particularly suited to very high-profit businesses that may be under management. Your business will not be actively marketed, but will be mentioned to suitable buyers. It may take a while to get your business sold, but that is to be expected with no marketing program in place.

9.  Prepare For An Exit Budget

Your exit budget will be about 10-15% of your sale price. This budget includes: setting a marketing budget, paying a lawyer for guidance on contracts, business agreements or lease assignments, paying your accountant for advice on tax planning, paying commission to your business broker and preparing your business information for presentation to potential buyers.

10.  Reaching A Settlement

Once a buyer is found and a price is agreed upon, allow 2-3 months for a complete settlement. Stock take is done on settlement day, with a separate cheque written for the stock value, at cost. Deals can fall over, but don’t lose your motivation. The right buyer is out there waiting to be found!