Resouces for Selling a Business

Should You Consider Exiting Your Business?

Exiting your business is a major decision! You have devoted your time, money and energy to building, running and operating your business. It may well represent your life's work.

When Is the Best Time to Exit?

Usually the best time to obtain the highest price occurs when sales and earnings are good and trending upward. A solid earnings trend will enable an entering owner to pay a higher price and still meet his return of investment criteria. A history of good performance also gives the entering owner confidence in projected future earnings.

The exiting owner's bargaining position is also strengthened by a profitable record because the entering owner realizes that the exiting owner has the option of keeping his company.

When the decision to transfer is made, preparing the business for transfer should begin by obtaining current financial statements, performing needed repairs, and obtaining a third party appraisal before any efforts to market the business begin.

Who Would Enter My Business?

For most companies, there are several categories of prospective entering owners. The most obvious are other companies in the same business for whom the acquisition would be a logical expansion with potential economies of scale.

Consideration should be given to suppliers and customers of the business.

However, based on our experience in transferring many businesses, approximately 80% of the prospective entering owners are individuals who want to control their own future. Many of them will be moving into the area from other states and countries. They will consider retail, service, wholesale or manufacturing businesses.

Bressler Ventures LLC is in constant contact with a wide variety of prospective buyers who are seeking business acquisitions. We utilize effective search procedures to find and screen those who are best qualified to acquire businesses.

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How Long Does It Take to Transfer a Business?

It generally takes, on average, between three to four months to transfer most businesses. Keep in mind that an average is just that. Some businesses will take longer to transfer, while others will transfer in a shorter period of time. The sooner we have all the information needed to begin the marketing process, the shorter the time period should be. It is also important that the business be priced properly right from the start. Some exiting owners, operating under the premise that they can always come down in price, overprice their business. This theory often "backfires," because entering owners often will refuse to look at an overpriced business. It is usually better to set a fair, realistic price and be "firm".

It has been shown that the amount of the down payment may be the key ingredient to a quick transfer. The lower the down payment, generally 33 percent of the asking price or less, the shorter the time to a successful sale. A reasonable down payment also tells a potential entering owner that the exiting owner has confidence in the business's ability to make the payments.

What Happens When There Is a Entering Owner for My Business?

When a prospective entering owner is sufficiently interested in your business, we will help in the preparation of an offer or proposal. This offer or proposal may have one or more contingencies. Usually they concern a detailed review of your financial records and may also include a review of your lease arrangements, franchise agreement (if there is one) or other pertinent details of the business. The entering owner's proposal will be presented to you for your consideration. You may accept the terms of the offer or you may make a counter-proposal. You should understand, however, that if you do not accept the entering owner's proposal, the entering owner can withdraw it at any time.

We will submit all offers to you for your consideration. At first review, you may not be pleased with a particular offer; however, it is important to look at it carefully. It may be lacking in some areas, but it might also have some pluses to seriously consider. There is an old adage that says, "The first offer is generally the best one the seller will receive." This does not mean that you should accept the first, or any offer—just that all offers should be looked at carefully.

Thinking of Selling Your Business?

If you are ready to consider a sale, or any of the other important events, as Primary Business Consultants we can do more than just sell your business. We can help you maximize the value of your business to make sure you get every penny you deserve! Our successful experience can help you accomplish your goals in total confidentiality and be certain that you avoid the pitfalls in the process.

We can help you maximize the value of your business which will allow you to walk away with more money when exiting. Plus, we will help you keep more of what you earn!