With all the businesses sold there are common factors that stand out. We have narrowed that list down to the five most important secrets for selling a business.
Having an accurate and complete accounting of all income and expenses related to the business is requirement number one. Management should be using this data to operate the business, make improvements, and stay in compliance for tax purposes. With the help of computers and software, general accounting functions are easier than ever.
There are very few business buyers that are looking for distressed financial situations. Most business buyers are investors seeking a return on their investment. Therefore, a company must be profitable and show through historical performance that the company can make money for the owners.
The best way to know if you have a product or service is in demand is by looking at the trends. If your revenue and profits and trending up, then there is a good chance the demand is increasing. The opposite is true as well. Said another way, your business must have room for growth and be scalable.
We can bring offers to the table all day long and never complete a deal if the business owner doesn’t have a genuine reason for selling the business. In order to have a sellable business you must be a motivated seller. In addition to that, every business owner should have a plan for the next phase of their life after they sell the business.
We tend to focus much of our attention on the Selling Price of the business. But we should not ignore the other terms and conditions associated with selling a business. Business owners need to approach this process with an open mind. They need be flexible – even creative and times – to make a deal work.
The main advantage of buying an existing business, versus starting one from scratch, is that there is existing cash flow (presumably, positive cash flow). Beyond that, there are existing processes, people and resources in place from day one. While these aspects may be improved by an in-coming buyer, the fact that they exist in some fashion accelerates the possible ROI opportunities. Additionally, existing businesses are typically easier to finance. One should also consider the potential of buying a franchise, whether existing or new.
Some businesses valued at 1 million€ plus never even get advertised on the internet. In lieu of mass internet marketing, these businesses typically target select groups and individuals across the country (or even the world). We Bandeira Consulting maintain databases of buyers looking for substantial businesses, and utilize our vast global office network for further reach. If you are looking to buy a business valued at 1 million€ plus, or for a strategic acquisition, we highly recommend you search our businesses advertised or then contact us Bandeira Consulting.
The quick answer = better results ! Business brokers and intermediaries specialize in preparing, pricing and marketing businesses for sale. Additionally, they are connected with a pool of potential buyers. You can focus on running and improving your business, while your business broker is finding and screening the buyers, and guiding the process to a successful closing. Given this expertise and focus, you are far more likely to sell at an optimal asking price and optimize your net proceeds, all in a shorter period of time.
At Bandeira Consulting we don’t believe in a cookie-cutter approach when helping people sell their business. Our deal makers follow a structured methodology that is designed to bring offers to the table, while maintaining confidentiality and minimizing business interruption. Here’s our successful 9 steps: - Analyze & Prepare The Business - Generate Value Estimates & Deal Structures - Pre-Approval of Seller - Contract signature - Execute Off-Line Marketing Strategies & Launch Confidential Promotion - Respond To & Screen Buyers - Manage Buyers and Evaluate Offers - Expedite Due Diligence - Prep Documents & Close CONGRATULATIONS: The next chapter of your life awaits for you !
We also recommend personally connecting with your brokers Bandeira Consulting. Once your broker understands the kind of business you want to buy, s/he can present opportunities to you even before they are advertised on the internet. Our brokers also maintain relationships with many companyes and popular franchise concepts; they can help you evaluate different solutions opportunities if that’s an area of interest.
Bandeira Consulting brokers connects more buyers with the RIGHT business opportunities. Our vast inventory of businesses for sale includes both Main Street businesses (those valued at less than $1 million) and Middle Market businesses (those valued above $1 million. You can easily search our Businesses For Sale using a number of criteria such as geography, industry and cash flow. We highly recommend to contact us for updates on new business listings that match your criteria – that way you’ll be one of the first to know about new opportunities.
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