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YODER & ASSOCIATES REALTY, INC.
Successfully Selling Your Business
If you have ever contemplated selling your business, I’m sure you’ve wondered to yourself, what do I do and where do I start. Many business owners find themselves in a similar predicament, without a plan or formal
direction, while the wise ones, educate themselves on the “ins” and “outs” of how to sell their business and then seek professional assistance to guide them through the process.
There are few steps a Seller should follow, once the decision is made to sell:
1. Decide why you are selling the business. Never make your decision because you’ve had a bad day or found yourself in a bad situation. Be honest with yourself and base your decision on sound reasoning.
2. Hire and retain a professional Broker to help you through the process. Don’t get bogged down with the headache of fielding calls, showing the business to prospective clients and negotiating to heaven’s end the very minutia of the deal.
3. Once the decision is made and the relationship with your Broker is established, begin accumulating information relative to the transaction.
This may include:
- copies of leases, deeds, contracts and marketing agreements
- copies of at least three (3) years current P&L’s and Federal Tax Returns
- list of all equipment (leased and owned), any and all loans, employees and their position and rate of pay
- copies of any judgments, suits or liens on the property and their disposition
- pictures of the property (both inside and out)
4. Work closely with your Broker to develop methods to market your business for the highest degree of success. The more information about your business your Broker knows, has access to and is allowed to share with
prospective Buyers, the greater the likelihood your business will sell.
5. Maintain your business at its highest level of operation during the selling process. Imagine you are the Buyer, how do you view your business?
- Repair any damaged or nonworking equipment, signs, lights, etc.
- Maintain your normal hours of operation.
- Clean up and reset the store’s merchandise, rebuild displays, remove all old or damaged product and maintain your pricing structure.
- Clean, clean and clean some more. The cleaner the store and the surrounding property, the more interest you will garner from the prospective Buyer.
6. Be flexible, patient and resolved throughout the selling process. Remember, things don’t happen over night. If you are sincere in your desire to sell your business then also be resolved to take the time and effort necessary to accomplish your goal.
7. Don’t shoot the messenger! Your Broker is required to bring you offers submitted by prospective Buyers regardless of how unbelievable or unacceptable they may initially appear. This is where the patience comes into play. Be flexible and work with your Broker to refine and counter the offer to meet your terms and conditions. If you have a Buyer interested in your business, make it work for you.
Last but not least remember, success depends on planning and execution. Your Broker will strive to put into place the best plan he or she can derive for selling your particular business. It will be up to both you the
Seller and your Broker to follow through the steps involved in attaining success.
If we may be of assistance to you in the process of selling your business, please do not hesitate to give us a call.
Good luck and may all your goals and dreams become a reality.
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