What You Need to Know Before Selling a Business

Selling a business can be a complex process. For a successful result, it is necessary to understand the complete process and properly prepare the business. Sunbelt of Durham is part of the Sunbelt Network, the world’s largest business brokerage operation. We have the expertise to guide you through the selling process.

If you’re contemplating the sale of your business, there are many important aspects to consider. We will help you achieve your goals, maximize the value of your business, and guide your deal to the closing table.

Here are three important things to know before selling a business:

1. Timeline – Understanding the timeline is critical so you can give yourself enough time to plan for success. It can take approximately 1-2 months to value the business and draft the Offering Memorandum. Then, once the business on the market, it is common to take 6-11 months to sell. Knowing the typical timeline will help keep realistic expectations.
2. Valuation – One of the most important steps in selling a business is pricing it correctly. There are several ways to determine what another party would be willing to pay for a business; a formal business valuation and a broker opinion of value are the most common. The size and complexity of the business and the type of business can determine the right approach for valuation. Also, keep in mind that it’s not all financial. Buyers look for things like scalable infrastructure, strong management, customer base, and growth capacity.
3. Confidentiality – Maintaining confidentiality is another key to success when selling a business. One way to protect confidentiality is to hire a business broker or a Merger & Acquisition adviser.

Our Sunbelt team in Durham will do a complete evaluation of your business so that you can be sure that the asking price reasonably reflects your business’ value. Sunbelt will work with you to sell your business confidentially and quickly. Contact us today.