When you finally decide to sell your business, don’t just let the business go.
The process of coming to the decision to sell a business can be an emotional one. Many times it is a lengthy process that requires a meeting of the minds of several owners or family members. But when the decision has been made, sellers need to remember that it is just the beginning of the sales process. Although “burn-out” may occur, the seller CANNOT let the business fade.
A seller may feel emotionally worn out and ready to move on by the time they sign a listing agreement to sell their business, but they must keep focused on business as usual. If the seller has hired a good business broker, he should be tasked with the job of selling and managing the sales process, while the business owner continues to run the business successfully. The seller must take care not to mentally check out of the business until the deal is done and escrow is closed.
Here are three reasons to keep sales growing:
1. One never knows how long it will take to sell a business and even some profitable businesses never sell. If a seller lets the business fade after it is listed, they will be losing out on potential profits that they could earn before the business finally sells.
2. Buyers and SBA lenders want to know the business is not “sagging.” A smart buyer will not want to see just last year’s numbers, but a current accounting as well. Lenders look for the latest details on the condition of the business. SBA lenders will always check current financial statements (P&Ls, Balance Sheets, Aging A/R, etc.). Any declines will tarnish the view of the buyer or lender, possibly jeopardizing the sale of your business.
3. Businesses that are showing new positive sales trends are much more appealing to a buyer. Some buyers worry that the seller “knows” that the business is about to decline and assume this is why they are selling. This is rarely the case, and if a seller can show positive current numbers, this can alleviate the common worry. Bottom line, if the seller can show that the business is currently in good health, the deal becomes much more attractive to potential buyers.
In conclusion, if you have built a profitable business, find a good broker to handle all aspects of the sale. This will leave you free to care for the business, make money in the interim and turn over a very healthy, growing business into the hands of its new owners. |
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Joe D. Robertson, CBB - Southern California Business Brokers
Joe D. Robertson, CBB is the broker/owner of Southern California Business Brokers, one of Orange County’s premier independent business brokerage. Joe has over eighteen years of experience owning, operating and selling successful businesses. Joe started, managed and eventually sold three separate businesses which has provided him with unique insights in his role as a business broker.
Contact Joe D. Robinson directly by phone: 949-307-3817
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