SELLERS

Simply put, selling a business is complex. Business owners who decide to sell their business should be prepared, patient, responsible, and realistic about the process. When owners strategically plan the sale of their business, from start to finish, they put themselves in a much better position to succeed. Below are some essential steps required for successfully selling a business.

Commitment to selling

Deciding to sell a business is one of the greatest challenges that a business owner will face.

When debating your company’s future ownership, it is imperative that when the business owner makes a rational decision to sell, they see the plan through. It is only human nature to question if it’s the right time to sell, but those owners who see their calculated decision through, will be successful in the end.

Bring in professionals

The sale of your business will require the expertise of many professionals. In order to maximize deal value, terms and closure seek out trusted advisors to protect your best interests. In most business transactions, this team would consist of an attorney, business broker, and CPA. Collins acquisitions can provide most of the services needed however we work predominantly for the buyer.

Conduct a business valuation

Call Collins Acquisitions for a valuation before selling to the marketplace. The objective and value of a business appraisal is to set a fair asking price so that your business assets (both tangible and intangible) are fairly valued and attractive to savvy buyers. The business valuation will validate your asking price, enabling a seller too significantly reduce buyer negotiations and confidently stand by their asking price.

Confidentiality, Confidentiality, Confidentiality

It is obvious that the majority of business owners do not want to hang a for sale sign on their business, alerting employees, customers, and vendors of their intentions. Maintaining discreetness during the sale of your business is a must. All parties advising you on the sale of your business should first sign a confidentiality agreement. Collins Acquisitions can prepare a simple mutual NDA or ask a professional for their boilerplate agreements. In addition, all Collins Acquisitions buyers sign non-disclosure agreements before any material information about the business is shared.

Get your affairs in order

When entertaining prospective buyers, they will want to closely analyze your financial statements, both past and current. It is important that all adjustments and reporting be made prior to presenting balance sheets as any material change prior to closing will have an impact on the final purchase price. Other areas you should focus on include lease agreements (if you do not own real estate), key employee contracts, key client contracts, etc. Finally, get your physical business location(s) in presentable order by cleaning, organizing and preparing for VIP visitors.

Package the business

Collins Acquisitions provides all our clients with information pertaining o your operation, industry, financial performance and future prospects. A confidential, presentation package is always given so you can be sure the business is presented in the best light.

Due Diligence

Following an Offer to Purchase or Letter of Intent, your qualified buyer is most certainly going to conduct due diligence on your business, its financials, customer lists, employee contracts, vendor relationships and other elements you claim to be in place with the sale of the business. While this is a normal process, typically lasting a couple of weeks (sometimes longer based on deal size), due diligence should not just be from the buyer.

Close the Deal

Collins Acquisitions will help to execute the sale of your business and should serve as a buffer between you and potential buyers when it comes to negotiations. Common areas that are negotiated are purchase price, terms and deal structure, non-competes, owner training/support, etc. You may like to get a broker but we should be able to effectively work the terms, inclusions, and exclusions.  Above all else, it is critical that you also rely on your attorney, when negotiating, drafting and accepting terms in the Purchase Agreement.  We try to communicate with your attorney and our client’s (buyer) attorney to get everyone to the closing table and seal the deal.

Contact Collins Acquisitions today to learn more about our business valuation services and to schedule an in-person, no obligation meeting with one of our team.