10 tips for business selling

Most people who decide to sell their company do not expect this mission is easy. However, many are also surprised how difficult that is to close a fair deal at a good price and within a reasonable time. Especially in the current economic environment, if you find yourself in this situation, it avoids that frustration would prevent you to get the most out. Many of the frustrations and difficulties experienced by the sellers could avoid easily, to being aware of the challenges that have faced throughout this process, including the work after the sale.

Is that Impossible to achieve? The answer is no. To do this, I am going to give you some tips for business selling.

Prepare a strategy

The lack of preparation is the most common mistake those owners of small and medium-sized enterprises (SMEs). As well as one arranges a little home before placing the sign "for sale" on the facade, it is important to consider several key aspects of your business before announcing that it is for sale.

The financial documentation (including a balance sheet and statements of income), profitability, open lines of credit and even staffing problems will influence both the feasibility of the sale, the price that the Organization will reach in the market.

Therefore, once you already decided to sell your company, you immediately have to begin this process of preparation. The majority of professional sellers thinks that this should be performed at least two years prior to the transaction.

Do not trust too.

It is okay be sure that you will succeed and you sell your company at a good price. This attitude is positive when that trust becomes the cause of set aside the tasks necessary to realize your goals. So do not think that you close a deal just only because from your perspective you think that your business is worth.

In the real world, the value has based on criteria that can be quantified, not on the personal calculation of the owner. To avoid the imposition of your point of view, ask a third party (specialized in the matter) to make an appraisal.

Delegate sales professionals

You are an expert in running your business, not to sell it! Even so, it is always amazing how many owners are reluctant to hire professional managers to facilitate the sale. This is because those, on occasions, want to save approximately 10% of the total transaction value corresponding to the fees of these people.

However, what is not taken into account in the majority of cases is that sales agents are able to add between 10 and 12% of the sale price. Although a "direct deal" makes sense in certain circumstances, the truth is that a professional offers the advantage of resolving important tasks, and be responsible for developing a strategy, prospect clients and negotiate the deal.

Monitor the entire process

Once you have hired an agent, your work ended, for nothing! Many sellers make the mistake of withdrawing from the process once they sign the contract of sale. Although the work of the corridor consists of placing your business on the market, safe no one is more motivated, and then you have to make sure that things are going well.

If you still do not do it, talk with your agent about the way that you can promote proactive your company, without interfering in their work. As soon as there is a list of qualified buyers, you must interview with each of them. Remember that your interaction with potential customers will influence a decisive so that your company is sold.

Pre-qualify buyers

Sales agents generally avoid evaluating from the beginning to the prospects for fear to scare them. Reality shows otherwise, since it is more frequent that this encourages people to delve more into the sale.

Another advantage that offers to do a screening is to prevent certain sensitive information of your company to fall into the wrong hands. It also ensures that only serious buyers have access to essential details.

Always be objective

As has been a seller, it is likely that you want to show your company the most flattering perspective. At some point during the process of selling your agent or you will be tempted to exaggerate figures, alter projections and even hide problems. However, the distortion sends warning signs when prospects revised numbers from the company. For this reason, speak to your broker and advise to keep an objective position at all times.

Learn how to set a fair price

Inexperienced sellers tend to set a price (usually a rear sight) before having determined the value. The reason this practice is a big mistake is that the price is, by itself, the most important factor to determine how long a business stays in the market.

Vendors that are taking the time to assess the process before assigning a base price are more in touch with the values of the market. In this way, are better positioned to defend that price and enjoy the advantages of a speedy sale and without complications.

Offer payment options

Cash transactions are not realistic in today's market of companies that are for sale. Instead of offering a huge WAD of bills to close the deal, it is more likely buyers today need concessions, such as schemes financing, deferred payment or up to counseling to get credit from a third party.

If you think that this does not suit you, it is considered that the benefit as a seller is that if those who typing you system payment receipts over a period of several years, you have the possibility to defer the payment of taxes.

Respect the confidentiality

If you spread the word that your business is for sale, it could affect negatively the transaction and relationship with your team.

A professional agent needs to know how to simultaneously put your business in the market and maintain strict confidentiality. If you are looking for is a direct treatment, this has accomplished if you creatively oriented your marketing efforts to focus only on a defined group of potential customers.

Planning the transition

Many owners are concentrated both in selling that they neglect completely the process of transition that will occur after the deal. Maybe some buyers will insist the former owner to stay there for some time to participate in the transition from owner and administration. While others, may prefer to start from scratch.

Any of the two cases is OK, provided the buyer and seller have talked about this process and come to an acceptable arrangement for both sides during the negotiations.