As a business owner, be aware that the Economy is the most important factor influencing the value of your business at any given point in time; and it is beyond your control. Historically, business owners whose personal timing was off have been forced to sell during a down cycle, with a potentially large financial penalty; or wait years for the next peak.
Thoughts on When to Sell Your Business:
- If you are thinking of selling within the next 3 to 5 years, your planning should start now!
- Sell when business is good, don’t fall into the trap of waiting to long.
- Try to sell your business when the market is ready which may not be when you are ready
Who to Retain to Sell your Business
Consider using an M&A firm if the following conditions are present:
- Your business is valued over $5,000,000 including real estate
- The buyer will likely be a non-local or public company with synergistic reasons for buying
- The best buyer will have to be found, as opposed to finding you in a newspaper
- Deal structure will be complex
Remember that these firms are large, expensive and may be located thousands of miles from your business. Ask yourself, will the person who signs me up be the same person who markets my business? Will they travel thousands of miles to be on hand each time a buyer looks at my business? When I call thier office will I talk to someone with experience that I have met face to face? Tough questions, get the answers first.
Consider Using a Street Broker if the following conditions are present:
- Your business is valued at under $300,000 including real estate
- You anticipate an uncomplicated deal structure
- A local individual is the likely buyer
- Local advertising will be the most effective method of selling your business
- Confidentiality is not a primary concern
As a final check, ask if the broker has been a member of the International Business Brokers Association and has earned the Certified Business Intermediary designation.
Business Marketing Services, Inc.
At Business Marketing Services, Inc., we combine the experience of an M&A firm with the availability of a local firm. The people you meet first are the same people you work with everyday. No buyer will ever tour your business without one of us being there. Our strategy is to make sure you can always talk to someone who is intimate with your situation. Finally, we never take a listing that is more than one days drive from our office. This all adds up to better service for our Clients.