Selling Tutorial for Business Owners

A Comprehensive Guide on How to Sell a Business

Selling a business can be a complex and emotional journey. After all, you have invested years of effort, energy and resources into building and operating this enterprise. With the right strategies and a professional business brokerage like Inbar Group, you can successfully navigate this process and sell your business for the best price and terms.

In this guide, we discuss the best way to sell a business, along with industry tips that can help you achieve a successful sale. If you have questions about how to begin selling your business or need help determining its value, contact our professional brokerage firm.

Steps to Selling a Business

Whether you’re looking to retire, start a new venture or capitalize on its current value, a successful sale begins with preparation.

1. Decide on the Right Time to Sell

Do you really want to sell your business? Whether for personal or financial considerations, assess your readiness to let go and clarify your motivations. While a thriving market may increase the value of your business, market conditions should not be the only factor you consider. Before moving forward, determine if you’re in the right financial position and frame of mind to transition.

2. Harness the Power of a Business Broker

Finding a business broker is one of the most important decisions you can make before selling your business. Engaging professional help early in the process ensures you have support and advice as you navigate selling. 

Here are just some of the ways the brokerage specialists at Inbar Group can assist you:

  • Guidance throughout the process
  • Accurately pricing your business
  • Document preparation
  • Evaluating market conditions 
  • Marketing to attract serious, vetted buyers on appropriate platforms
  • Buyer screening
  • Negotiations to mediate a win-win outcome

3. Understand the Value of Your Business

Once you’ve found a broker, you’ll want to determine what your business is worth. A business valuation is a comprehensive assessment of your company that helps determine an appropriate selling price. Your business broker can assist in pricing your business, evaluating market conditions, industry benchmarks and financial records to determine a fair market value. 

Before you put your business on the market, ensure it’s in prime selling condition.

4. Prioritize Pre-Diligence

 

Gather Financial Records

Your prospective buyers will eventually want a transparent view of your financial figures. Accurate records foster trust and demonstrate your business’s financial health and potential growth areas. Some of the information you should have organized and ready to present:

  • Three years of profit and loss statements
  • Three years of federal income tax returns for the business
  • Lease and lease-related documents
  • List of loans
  • Equipment leases
  • Franchise agreement, if applicable
  • Amount of inventory, fixtures and equipment on hand
  • Contact information for vendors, suppliers and outside advisors

Streamline Operations

Reviewing and refining your business processes demonstrates to buyers that your company is well-organized and efficiently run. Streamlining your operation before listing it could increase your business’s market value and make the transition smoother for the new owner. Your efforts might include:

  • Creating a comprehensive operations manual that covers daily procedures, key contacts and essential business functions
  • Updating procedures to improve efficiency and reduce errors
  • Reorganizing tasks or clarifying roles
  • List ItemImplementing modern tools or software to enhance productivity and communication
  • Ensuring all vendor and supplier contracts are up-to-date and favorable

Address Any Legal Issues

Buyers are far more likely to move forward with confidence when they see that your business is free of legal complications and fully compliant with all regulations. Take steps to address any legal issues, including:

  • Complying with all relevant laws and regulations
  • Resolving any ongoing legal disputes or litigation
  • Securing and documenting your intellectual property rights

Elevate Curb Appeal

While financial and legal considerations are critical to selling a business, it’s also important to consider its appearance. A strong first impression encourages buyers to explore everything your company has to offer.

Some ways to enhance your business’s presentation include:

  • Tidying up the premises
  • Repainting
  • Repairing signs
  • Replacing lighting
  • Repairing, replacing or removing inoperative equipment

Understand the key differences between an asset purchase sale and a stock purchase sale. 

  • Leases
  • Licenses
  • Rate structure with vendors
  • Ongoing contracts

5. Screen Potential Buyers

Not every person or party that expresses interest in your business is the right fit. Focusing on qualified buyers ensures your business attracts the right opportunities. With the help of your business broker, you can screen potential buyers to ensure they have the funds and intent to see the purchase through to completion.

The right buyer will showcase:

  • A strong desire to run a business
  • Financial resources
  • Healthy decision-making capabilities
  • Reasonable expectations

Once you have the right buyer, your business broker can help you prepare an offer and guide you through the selling process — from negotiations to finalizing the sale.

Mistakes to Avoid When Selling Your Business

An experienced business broker can help prevent mistakes that could put the sale of your business at risk, including:

Your broker will examine market conditions and your motivations to sell to help determine the optimal time to proceed.

Regardless of what you think your business is worth or what you want for it, the marketplace can determine its actual value. Setting an unrealistic price can deter serious buyers.

Inaccurate financial records can delay the sales process and cause concern for buyers.

Unrealistic expectations can make negotiations difficult and unproductive, as some sellers are unwilling to compromise or make concessions. 

Why Choose Inbar Group?

The success of selling a business relies on more than its inherent value but on the skills, experience and professionalism of your business broker. The right support empowers you with an ally who can ensure a smoother process and more beneficial outcomes.

If you believe it’s time to sell your business, reach out to Inbar Group. As recipients of the “Best of Small Business Awards,” we’re committed to upholding the highest standards of service and trust. Our professional guidance offers numerous advantages to those looking to sell their business, including:

  • Expert guidance: Our valuable insights guide you through the complexities and potential pitfalls of business sales.
  • Time saved: We handle the selling process so you can focus on maintaining your business operations.
  • Access to buyers: Our networks and resources connect you with serious, qualified buyers.
  • Optimal selling price: We help you achieve a higher price than if you sold independently.
  • Confidentiality: We market your business while maintaining your security and privacy.

Visit Our Seller FAQ

Visit our Seller FAQ for answers about common business seller questions, like:

  • What Do Business Brokers Do?
  • How Long Will it Take to Sell My Business?
  • What Can I Do to Help Sell My Business?
  • What Happens When There Is a Buyer for My Business?
Visit Seller FAQ Section

Streamline the Sale of Your Business With Inbar Group

Call Us: 212-473-5000

The sooner you connect with Inbar Group, the more smoothly and confidently you can navigate the selling process. We look forward to guiding you through these steps to a successful sale. Contact us today.

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