Your Business Yourself - NOT a Good Idea
The independent business owner
who decides to sell is at the threshold of a major process involving the
emotions as well as the marketplace. In many cases, the business for sale
represents the seller's life work. Being the independent type to begin with,
as well as someone who knows about deals and sales, the tempting notion
sometimes arises: Why don't I handle the sale of business myself? Those
sellers with similar temptations should first take a look at the steps necessary
for the successful business sale- and at the advantages of taking those
steps in tandem with the best possible professional guide.
BUSINESS FOR SALE
What looks good or just fine
to the seller could make quite the opposite impression on prospective buyers.
The weathered sign out front that the seller thinks is "rustic"
might strike a buyer as in need of a fresh coat of paint. On the other hand,
improvements planned by the seller may be either unnecessary or wrongly-conceived.
In either case, sellers would be wise to rely on the advice of a business
broker, a professional with experience in dealing regularly with buyers
and with the objectivity required to set the business scene. Of course,
a business will sell according to the numbers. A business intermediary can
be invaluable in helping the seller provide financial records that are clear
All sellers naturally want to
get the best possible price for their business. However, they also need
to be realistic about the true value of the company for sale and to understand
that the price is, in fact, dictated by the marketplace. To determine the
best price, a professional business broker will use industry-tested valuation
techniques, including ratios based on sales of similar businesses, as well
as the historical data of the type of business for sale.