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Selling Your Business? Ten Tips to Sell Faster for More Money!
by Bruce Cook, CPA
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1. Don’t let bad bookkeeping work against you.
Even if financial statements reflect poor performance, be prepared to
explain the reasons behind the performance and remedies for
improvement. Remember: buyers are often attracted to potential and
just might see your business as the perfect acquisition.
2. Price it to sell!
Don’t listen to Brokers looking for an “easy” listing who tell you a
sales price that is too high – hoping that’s just what you want to
hear. Price your business realistically. Sellers tend to overprice
their businesses. When that happens, the time it takes to sell just
stretches out to the point it becomes stale or does not sell at all.
3. Be prepared to finance the deal yourself.
Many buyers today rely on the seller to help them buy the business.
Failing to offer financing reduces interest and confidence in the
business.
4. Do not get stuck in an exclusive listing with an incompetent broker.
You know your business better than anyone else, so only pay for the
professional services you need so you can either keep more money from
the sale of your business or have more room to negotiate with a
serious buyer.
5. Do not go into the selling process if you have outstanding problems.
Resolve any major outstanding issues before you begin. It is very
wise to start preparing your business for sale two to five years
before you actually market it.
6. Keep the sale of your business confidential.
Prevent issues arising such as employees jumping ship, or negative
attitudes from employees, customer and supplier actions, etc.
7. Package your business to sell.
Prepare a marketing package in advance to give to qualified
prospects. Tip: use a business plan template as a format for your
marketing package.
8. Show your business to sell.
Spruce up your business physically. Remove personal items not
included in the sale. Throw out garbage, take out all boxes stacked
in the office, fix the broken glass, paint the office, or whatever
else is necessary to make the business look good.
9. Negotiate to sell.
Remember that your goal is to sell, and not to beat your buyer at
some negotiation game. Don’t get bogged down in disputes with your
buyer. Don’t allow ego to destroy a sale. Try to work with your buyer
as an ally. Focus on interests, not on positions.
10. Seller Tip:
Be honest!
When talking to buyers get straight to the point and try not to spin
the facts.
Bruce Cook, CPA is the owner of Discount Business Brokers USA, a company
at the forefront of the effort to modernize the business brokerage
industry and bring more choices to the modern business seller.
Discount Business Brokers USA offers confidential consulting on all
phases of small business sales and acquisitions.
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