| Are you trying to sell your business, and quickly? | | | | their needs to be a buffer in case the business |
| Check out these tips as they may help you | | | | loses sales due to the business transition. |
| achieve your goal. | | | | To make sure the business is reasonably priced, a |
| 1. Have a reasonable listing price. | | | | valuation can be performed and this will guide the |
| 2. Be prepared to negotiate. | | | | owner on the most appropriate listing price. The |
| 3. Have a folder of information readily available for | | | | cost of a valuation can vary from $500 up to |
| a qualified buyer. | | | | $3,000 depending on the complexities of the |
| 4. Run the business as usual. | | | | business. |
| 5. Make sure the business presents well; give it a | | | | If you are motivated to sell your business quickly, |
| "spit and polish." | | | | be careful how you handle each buyer inquiry. If |
| 6. Get a current snapshot of the business | | | | you disclose too much information too quickly it |
| financials and keep them up-to-date. | | | | may result in a lower offer from the buyer. |
| 7. Put together a current list of Fixtures, Furniture, | | | | Additionally, the buyer may sense your urgency, |
| and Equipment (FF&E). | | | | also contributing to a lower offer or in some |
| 8. Consider counting all inventories so the value is | | | | cases, frightening the buyer away as they may |
| known. This helps the buyer understand the final | | | | be concerned something is being hidden. |
| purchase price and reduces one of the many | | | | According to the California Association of Business |
| areas of negotiating a deal. | | | | Brokers, it takes about 7 ½ months to sell |
| Of the reasons a business does not sell, the | | | | a business; if it sells. Once you receive a written |
| number reason is that the price listed for sale is | | | | offer from the buyer and start the negotiation |
| unreasonable. An unreasonable price can be seen | | | | process, it will take anywhere from 6 to 8 weeks |
| by looking at the earnings the business is | | | | to close escrow if inventory is included in the sale. |
| generating and then looking at the business from | | | | It may take longer if licenses such as alcohol, |
| the buyers perspective. The buyer will have their | | | | contractors and other specialties are required. |
| fixed cost minimums such as mortgage and | | | | There are many complexities to selling a business. |
| household bills to cover. If they buy a business | | | | Using the services of a qualified business broker |
| they need a requisite down payment plus the | | | | can protect you and your business and achieve |
| business needs to have enough cash flow to | | | | your goal of selling your business in the shortest |
| support any debt the buyer needs to service. Plus | | | | time possible for the highest purchase price. |