Selling A Business
7 Answers That You Should Be Ready With When You Plan To Sell Your Business in Fort Lauderdale
Now that you have decided to sell your business, or are seriously considering that as an option, you must ensure that you take the appropriate steps to ensure that you get the maximum possible value for it.
The key lies in being prepared for the queries that will invariably be raised by the buyer. You must anticipate these as best as you can, and collect all the information and data that you will require to answer them.
Here are some of the questions that you can expect to be thrown at you:
1. What is the amount that you want for your business?
Don’t quote a figure that is much higher than the value that you expect to get. This could result in genuine buyers backing out.
2. Are you ready with your financial statements?
Remember that it is essential to familiarize yourself with the figures for at least the last three or four years. A potential buyer will be interested in knowing about how all the good things that you have said about your business translate into profits.
Pay particular attention to the debtors’ figure. Are all the sums recoverable or do some accounts need to be written off? Is your inventory valuation accurate?
3. How long are you willing to remain available to provide advice and answer questions after you sell the business?
Three months? Six months? What sort of commitment are you ready to make? This could be a crucial factor for the buyer.
4. Are you sure that your key employees will stay on after you sell?
A business is only as good as the people who run it. If your manager or a few workers who are critical to the success of your business leave soon after you sell, your company may be worth a lot less than the amount you are asking for.
5. Will customers remain loyal after you have left?
This could be especially important if your clients are other businesses and a handful of them account for a bulk of the sales.
6. If your company is located on leased premises, when is the lease agreement due for renewal?
Will the owner extend the lease on the same terms? It may be a good idea to talk to your landlord and be ready with these answers.
7. Why are you selling the business?
Are you ready to retire or is poor health the reason? Every potential buyer would want to know the rationale behind your decision to sell.
If you can confidently reply to the questions that are raised and back up your answers with the relevant details and figures, the chances of the deal being successfully concluded will go up.
On the other hand, if your preparation is inadequate, and you are unable to furnish the relevant information quickly, the pace of the transaction could slow down, and the buyer may lose interest.
Our best advice? Don’t waste another day and talk to a Sunbelt South Florida broker today!
Sunbelt Business Brokers of West Palm Beach provides dedicated business brokerage services for all of your selling needs. Whether you are an established business owner nearing retirement and looking to sell, or an ambitious entrepreneur seeking your next investment opportunity, there is no reason to look beyond Sunbelt Business Brokers. Visit us at 800 Village Square Crossing Suite 216 Palm Beach Gardens, FL 33410 or contact us at (561) 832-9222.
Ryan Cave is President of Sunbelt Business Brokers of South Florida, a business brokerage firm specializing in the purchase and sale of small to midsize businesses. Sunbelt Business Brokers of South Florida has been involved in the valuation and sale of hundreds of privately held businesses for nearly 20 years.
