It’s no secret that selling a business in New York City can be daunting. The city is massive, and making your company sell for the most money will take time and effort, but with the right strategy, you can get tremendous results and sell for your dream price in the Big Apple.
This guide outlines everything you need to know, from preparing your business for sale to developing an effective marketing strategy and advertising. We won’t stop there—we’ll also cover all the resources you need to get a fast deal.
Selling a business in NYC Tips
These are the significant steps that must be done to sell a business in NYC:
Before selling a business in New York City or anywhere, you must have a good reason for selling. Selling a business is hard work; if you don’t have a good enough reason, you will likely not do the work necessary for a successful transaction.
The next step is to know what your business is worth. It’s not an exact science, but you should have a range of its likely sales price. You can use “rules of thumb” from Business Brokerage Press or contact a business appraiser.
Preparing your business for sale is a critical step that must be taken seriously. Failure to execute proper preparation will lead to failure. Preparation includes cleaning up and organizing the physical location like when selling a home. An online business may require organizing digital assets and creating standard operating procedures. The company must be able to continue in your absence with trained personnel or operating procedures that a new user can follow. “It’s not what the business is worth to you but the buyer.”
Marketing materials are typically executed using a Confidential Information Memorandum (CIM). The CIM describes the operation and financial condition of the business in detail. Depending on the company’s complexity, this document can be five pages to 50 or more. This document is confidential and only released after receiving a non-disclosure agreement (NDA).
The final stage is due-diligence, where a buyer gets a comprehensive view of your business, usually including site visits. Any equipment will be inspected, financials will be analyzed, and customers may be visited. Meetings with critical employees may also be part of due diligence.
Resources to Sell a Business
A business broker or intermediary is often used to assist in selling your business. They primarily help you prepare, market, and advertise your business. They are usually paid a commission at the time of sale and often collect upfront fees for initial prep work. Not all companies need a business broker, mainly if the business has less than ten people and has less than one million gross sales. Every situation is different. Do your research and make the best decision for your circumstances. Here are resources to help you when selling a business in New York City:
Ultimate Guide to Sell Your Business ebook
Rules of Thumb Data
Bizbuysell
Bizquest
Selling a business in New York City is challenging because of its large and sophisticated pool of buyers. New York has a higher cost of doing business than most places, making the market unique. It is critical to ensure the CIM and the financials are accurate. Expect to share tax returns for at least three years, balance sheets, and income statements for three years. Contact us for a free consultation if you want information about selling your company.