Broker To Sell My Business is Not Needed
We get asked the question, “do I need a business broker to sell my business” all the time. The answer is no, but selling a business does require particular expertise. The expertise can be learned in this article. It mostly comes down to preparation, finding buyers, and due diligence. This knowledge will allow you to sell your business without a business broker and save time and money.
How To Sell a Business
- Calculate the value of your business, so you leave nothing on the table
- Recast financials, so the maximum value of the company is shown
- Create a business memorandum
- Market your business for sale to millions of potential buyers on the web and social media.
- Maintain total confidentiality, so nobody knows your company is for sale
- Screen buyer inquiries so you don’t waste time with tire-kickers
- Prepare for due diligence
Systematic Approach
You can sell your company without a business broker with a systematic approach. The key is to advertise on the most popular business-for-sale websites. After that, create a profile of the most likely buyers so advertising copy focuses on the most likely buyers. Every business is different, but the steps to sell a business are the same. Most businesses offered for sale or listed by business brokers never sell because of the following reasons:
Why Don’t Businesses Sell?
1) Wrong Sales Price
Most businesses will sell between 2.36 and 3.61 times adjusted cash flow in about 200 days. A well-prepared business that is correctly priced will often get multiple offers.
2) Not pricing the business properly
Buyers will stop and won’t even bother inquiring if your asking price isn’t set right. Using the most recent data, you need the most up-to-date pricing so your company is priced right without leaving money on the table.
3) Failure to properly advertise your business
You must advertise to a large audience to avoid wasting time and money. You must write advertising copy that gets noticed while keeping the sale a secret. Use business-for-sale websites and social media to reach the largest pool of buyers possible.
4) Not allowing enough time for your advertising to work
The average time to sell a business is about seven months, according to the BizBuySell Insight Report . If you don’t make the mistakes listed here. It is possible to sell sooner, but have realistic expectations, and you will be ahead of many sellers who give up too soon and walk away.
5) Business lacks a business memorandum
A Business Memorandum describes your operation of the business and its financial condition. Your need properly prepared marketing materials needed to attract buyers. Every company is different and requires different marketing materials to show your business in the best light. Cookie-cutter approaches no longer work and never worked well. Our customized marketing plan will give buyers the information they need to make offers.
6) Not preparing the business for due diligence.
Getting an offer on a company is just another step in selling a business. An offer will almost always be contingent on due diligence and is where most deals fall apart. No business is perfect, and any shortfalls that lead to objections should be anticipated. Objections should be handled by disclosing them early in the process and giving the buyer enough information to develop their solution.
Exit Strategy
Don’t spend time in a business that you are ready to exit. There are millions of people looking for businesses to buy if you know where to find them. We have solved all the problems with selling a business in today’s market. Get more money for your business and sell it faster than traditional methods. We researched how businesses are normally sold and discovered mistakes that cost you time and money. Learn how to avoid costly mistakes and eliminate wasted expenses. Click the button below to learn more about selling your company.
