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Business Advice:
How To Sell Your Business For More




Everyone wants to get top dollar when selling a business, yet most people are unsure how to go about the process. Some small businesses may sell through an online marketplace directly listed by the owner, especially if it is a particularly desirable industry like technology. While this may seem like a quicker and easier option at first, it can become more complex when prospects do their song and dance. You may find it’s hard to narrow down the pool to serious buyers or that prospects are offering you significantly lower than you’d hoped. Therefore, most owners will go through additional steps to sell, involving multiple players in the process.

 

What Sort of Value Are Buyers Looking For?

The first step is to consider why a buyer or acquirer might want your business. Some buyers are looking for the opportunity to bring in recurring revenue. Other buyers (already in business) are looking to derive a bigger market share and add to their customer base. A third class of buyers is looking to gain access to your trade secrets, talent pool, technology, patents, or other competitive advantage. Yet, most of the time, a business is acquired or bought based on all three of these elements. So, it stands to reason, if you want to command more money for your business, you need to present your business proposal in these terms and show prospects just how valuable your company really is.   

 

Should You Try To D.I.Y.?

To sell your business for top dollar, decide who you want on your sale team. It may also take a team of marketers, consultants, accountants, appraisers, and attorneys to safeguard you during the sales process. If you have intellectual property or assets that are nebulous and touch to quantify, you should consult a valuation expert or appraiser. If you want advice on quick, affordable business improvements that could boost the value of your vehicle, then you should add a business consultant to your retinue. If you are not sure where to find a good pool of hungry buyers or you’re not so hot at marketing and negotiating, then you’ll need a broker by your side. A broker can use inside connections to find prospects and will also filter out buyers who aren’t viable or serious.

 

Steps To Hiring A Broker

Just any old broker won’t do if you want to bring in top dollar for your business. Look for a full-time broker with many years of certification who has been certified by the International Business Brokers Association. Inquire about performance record statistics, such as the number of annual listings and sales, the average sales price, and whether the broker has experience with businesses like yours. Ask how your business will be priced and marketed. Be sure you know what the broker’s fee is. A standard charge is about 10 percent of the purchase price, although some charge a predetermined set fee. Find out the protocol for withdrawing a listing if you feel things are not working out.     

 

 

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Resources:
Entrepreneur: 3 Reasons A Buyer Might Pay More For Your Business
INC: Selling Your Business? Gather Your Team of Experts

 


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