How do I sell my business?
1. Hire an experienced broker to sell your business.
When a business owner hires a broker, he can have the peace of mind that he will be able to dedicate the bulk of his time to continue operating his firm; The broker must meet the following basic professional capacity requirements:
Commitment: The broker will take care of
- Place the company for sale in the Market.
- Interview and screen potential buyers to ensure they have the necessary financial resources and managerial skills.
- Advise the parties in all stages of the process: Offer, Analysis Period, Documentation and Closing.
This is, perhaps, the main difference between someone who sells real estate and a business. The broker must maintain the confidentiality of its mission and take safeguards so that neither employees, suppliers nor competitors find out that a sale process is underway.
An experienced broker will be able to express an opinion of the value of the company that serves to approximate a sale price, in line with the aspirations of the seller and the tolerance of the market.
Business Listings. Business brokers are usually subscribed to multi-listing systems where the businesses that their colleagues have for sale are also published. So when you hire a broker you are getting the support of a large sales force linked to the Florida Brokers Association.
Business brokers are usually affiliated with specialized websites where they can advertise the companies they have for sale, so the listings will have worldwide exposure via the Internet.
The broker serves as an articulation between the buyer and the seller and acts as a transaction agent that seeks to harmonize the wishes of the parties.
The broker is in charge of coordinating with the parties all the steps of the analysis process of the accounting and administrative books; The lease; licenses and permits and other paperwork. It will also coordinate with the closing agent the documentation related to the transfer of business assets to the buyer.
2. Value your business.
Although the broker is able to issue an opinion on the value of the company, it is advisable to hire the services of a specialized appraiser if you want to have greater accuracy in the analysis. Statistics show that businesses that are sold backed by an appraisal manage to close on average with discounts of less than 10% of the original price.
3. Update accounting books and operating permits.
The vast majority of small business owners make the decision to sell without having an “exit plan” in place. Consequently, the broker must instruct the seller to expedite the updating of his accounting with his accountant and, likewise, he must bring himself up to date with the payment derived from the official operating permits.
4. Repair damaged equipment and furnishings.
It is mandatory to deliver the furniture and business equipment to the buyer in good working order and, in addition, it causes a negative impression to show the business with inoperative assets.
5. Put your business up for sale.
The broker will evaluate the financial statements and review the relevant documentation before putting the business on the market. Business information will be posted on the Florida Business Brokers Association (BBF) website and other specialized sites such as www.BizBuySell.com and negociosenflorida.com as well as on social networks such as Facebook, Linkedin, Instagram and YouTube.
6. Negotiate with potential buyers.
The broker will be in charge of coordinating the interviews of potential buyers with the seller. During this meeting, a negotiation process begins which, if successful, must conclude with the presentation of a purchase offer.
7. Work with the Buyer during the business evaluation process.
Before buying, the potential buyer has the right to review the accounting books, the lease contract, the operating permits, the portfolio of clients and suppliers, among other vital issues for the knowledge of the business. Provide him with any information of interest that is within his reach.
8. Work with the Closing Agent.
The closing agent, usually a specialized lawyer, must prepare all the necessary steps so that on the day and time stipulated for the closing, the transfer of business assets from the seller to the buyer takes place and that the corresponding payments are executed.
9. Make the material delivery of the business.
Once the closing acts have been executed, accompany the buyer to the company's premises to make material delivery of all the company's assets.