Where to Sell Your Business
As a business owner, one of the first questions you may ask when you decide to sell is where to sell your business. Your industry, goals, and plan will ultimately help determine where to sell. Getting an accurate valuation, understanding the needs of potential buyers, and preparing for the transition post-sale are also part of selling a business. Making these considerations can help steer you to an answer to the question of where to sell your small business. Ideally, you get help to sell your business from experts that can answer your questions and increase your chances of success.
Seeking the advice of business brokers, mergers and acquisitions (M&A) experts, and coaches can help you reach your financial goals. These experts can also help prepare your business and you as an individual for the transition to new ownership. Call in your team of trusted advisors to help facilitate a successful business sale that honors what you have built.
Where to Sell Your Business
Determining the most effective place for your business sale can impact the entire process and desired outcome. Working with a broker is by far the best idea for help with increasing your multiple and getting the most out of the sale.
One of the most valuable places to start is your network of connections. Seek referrals for business brokers from colleagues, fellow business owners, and other industry professionals. Do your research online and seek out brokers with a proven track record for managing profitable business sales. Gain insight from others who have been through the process of selling a business. Working with a business broker specialized in preparing a business for sale will know from experience where to sell your business based on your needs, industry, and goals. Business brokers will take steps to identify qualified buyers, reach out directly, and get the selling process started for you.
How to Prepare When Selling a Business
The first step to preparing when selling a business is to get an idea of how you want to proceed with your business sale. Rather than tackling the business selling process on your own, the best idea is to work with a business broker experienced in marketing businesses for sale. Also, collaborating with an experienced broker is a good idea in order to check all boxes and ensure your business is prepared to sell. Further, a broker can help you as an individual prepare for the transition away from business ownership to whatever you have planned next.
The next logical step is to get an accurate valuation of your business. Analyze all business assets, liabilities, the current market demand, growth potential, and the overall financial health of your business. An accurate valuation completed with assistance from an expert can provide an unbiased perspective that will help determine a target selling price. Focus on steps to increase your business valuation to maximize your return on the sale. Get your business financials in order, limit liabilities, retain key team members, increase business income, and automate essential processes to increase worth and sell at a high value.
Prepare to sell your business by deciding what you want to get from the sale and how you would like the process to go. Make a plan for how you expect to transfer ownership. Would an outright sale be best for you and your business, or are you open to a more flexible, gradual sale? When the timing is right, get the ball rolling with the help of your business broker.
Finding a Small Business Broker
Finding a business broker to help with your business sale is the best to save yourself stress and time. A business broker will help you decide where to sell your business and will do most of the heavy lifting that comes along with the sale. This heavy lifting may include the time-consuming tasks of marketing, identifying qualified buyers, facilitating meetings between interested buyers and sellers, and assisting in completing due diligence.
A truly stellar business broker will start by compiling a strategic list of competitors and other qualified buyers who are most likely to be highly interested in buying your business. Your competitors are likely to be the most qualified and have the highest potential for buying your business. Not only do they have the resources, knowledge, and infrastructure to take on your business, but they get an automatic boost in revenue by taking on your existing customer base. This boost for them can greatly increase the potential price they are willing to pay for your business.
A business broker who takes the time to reach out to potential buyers on their strategic list will provide a one-page teaser prepared to give an overview of your business. Interested buyers will be asked to sign a Non-Disclosure Agreement (NDA). After that, a qualified business broker will obtain Indications of Interest (IOI) from interested buyers, which include proposals for the structure of the acquisition, approvals needed, a value range, and an anticipated timeframe for the completion of due diligence. They will then facilitate meetings between qualified interested buyers and the seller. During this meeting, each party can interview the other and determine if there is interest in moving forward. After identifying a good fit, the next step is to obtain a firm Letter of Intent (LOI) which will trigger the due diligence process. The expectation of the LOI is to provide a formal proposal of the purchase price, sale structure, and outline any specific terms and conditions requested.
Prior to completing due diligence, the broker will assist in providing an entire market portfolio of your business and drive negotiations. The business broker will assist in concluding due diligence, closing the sale, and helping with transitions. During due diligence, all marketing efforts to other potential buyers cease while the intended buyer requests information regarding the business.
When searching for a broker to work with, here are some questions to make sure you find the right fit:
How long have they been working as a business broker?
Are they licensed and have sufficient credentials?
What is their track record?
What are their fees?
How will they market your listing?
Depending on your business and if the sale involves property, you may also want to ensure they have their real estate license.
Ask for referrals to a reputable business broker from your network. Examine their testimonials to help decide if they are a good fit for your business. Most business broker contracts will lay out an exclusive relationship that limits you to working with them alone. Once you have decided on a business broker, get clear on what steps they will take to sell your business and the time frame for doing so.
Deciding Where to Sell Your Small Business
If you have made the wise decision to work with a business broker, they should have a plan for where to sell your business. Hopefully, at this point, you have also clarified what the responsibilities of your business broker are. The most effective approach business brokers can take lies in their list of strategic buyers customized for your business. As discussed above, your competition should be a primary target of potential buyers.
There are other routes to take when deciding where to sell your small business. If you have decided to take on the process on your own, online and print classifieds or your local chamber of commerce can be resources for advertising your business for sale.
Whatever route you choose when deciding where to sell your business, it is advisable to work with an experienced business coach to help you navigate any questions or concerns that may arise throughout the process. Consider that selling your business without the help of a business broker could cost you time, stress, and a lower sale price. Although brokers work for a fee, the cost of going it alone could ultimately be more expensive.
Where to Sell Your Business Online
Taking time to think like potential buyers, online is one of the first places they may search if they are looking to purchase a business for sale. With this being the case, you may wonder where to sell your business online. If you are working with a business broker, they may have a website where they can list your business for sale. Online classified ads are another place your can list online.
There is a long list of potential websites you can list your business for sale that may have good resources for you, especially if you are not working with a business broker. While this is an option, a much more effective strategy is the more specialized approach taken by a business broker. Some business brokers may work with private equity and venture capital sales platforms online like Axial.
The best approach you can take when preparing to sell your business is not online but by working with an experienced business broker and coach that takes a specialized approach to sell your business.
Let Coachwell Help You Sell Your Business!
Approaching a business sale is a stressful time for many business owners. With expert help, it doesn't have to be for you. The right coach and broker can steer you toward the best solutions for your business. They understand preparing valuations, advertising your business for sale, and how to transition ownership.
Coachwell offers services as coaches and business brokers to help reduce stress and maximize your success through strategic, personalized moves – from preparing your business to sell to transitioning from the business post-sale. Coachwell's experience in prepping a business for sale and holistic approach to coaching gives you as a business owner the confidence to sell your business for the highest value. Contact Coachwell today to get a personalized look at your business and learn how they can help you understand your best options for where to sell your business.
