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Is it the right time to sell your business?
Boss Group is the best choice to help you decide and execute.
You have devoted your time, money, and energy into building, running, and operating your business. It may well represent your life’s work. If you have already decided that now is the right time to sell, you want the very best professional guidance you can get.
This is when working in tandem with a professional business broker can make the difference between just getting rid of the business and selling it for the very best price and terms!
Below you will find helpful information about the listing and sales process as you consider to sell your business. If you have any questions that we have not covered, please don’t hesitate to contact us.
We are here to guide you through the process. While there are many services that we offer you, here are the most common services:
Often the biggest concern for an individual or team is the protection of their decision to sell. Our program does not disclose the identity of the business and its representatives, but rather takes an approach to procure Buyers using the least amount of initial information as possible. If employees, customers, or competitors learn about the potential of selling, it can cause chaos within a business, and lead to destructive and harmful consequences. Throughout the entire process, and even after the closing occurs, confidentiality is the number one priority during the process of selling a business in Florida.
Our marketing initiatives include the marketing of your business on a local, national, and international scale. Even though your business may be located in Florida, it is important to consider international buyers who may be interested in a Visa, and national Buyers that may be looking to relocate to Florida. Our team provides pre-sale consultation and preparation to create a concise presentation or report, which we call a “CBR”, or Confidential Business Review, to provide qualified Buyers with nearly all information they will need to consider your business for their purchase. We pride ourselves on completing the majority of the work in the beginning of the listing relationship, rather than in a frantic manner when a Buyer is knocking at the door.
One of the key ingredients in the effective sale of a business is ensuring that the business valuation we provide is close to the listing price. Our team takes a intricate approach using comparatives sales tools, industry trends, and historical growth. Additionally, our team utilizes financial ‘Recast’ for every business, in which adjustments are made to a multitude of items found on your financial statements. Your businesses’s uniqueness is evaluated as well, as all factors are considered to provide an honest opinion on the listing price that will provide not only the best chance for your business to sell, but at the highest dollar amount.
Perhaps the most tedious task in the selling process is dealing with what we call “tire kickers”, or ‘Buyers’ that are not qualified financially, legally, or professionally to Buy your business (or any business at all). Our team ensures that each candidate is screened prior to presenting them with confidential information about your business. Upon qualifying a candidate, there are also protocols that our ‘gatekeepers’ follow before introducing you to a prospect.
At the end of the day, it is YOUR decision when it comes to the negotiation of the final sales price of your business. However, we make sure to offer our advise regarding these matters based on our professional opinions of a fair selling price, that also offers you the highest financial opportunity and best terms. Acting as transaction brokers, we are required to deal honestly and fairly, and use skill, care, and diligence to ‘work the deal’. This level of integrity helps to create a level of trust between the parties that is typically appreciated by Buyers.
Your business isn’t sold until after the closing, so you should continue to run your business, not the sale process. It is important to keep focused on the businesses’ operations because if revenues drops (or employees and/or customers learn about the sale) while you work with hundreds of ‘potential’ buyers, your value may diminish. Furthermore, negotiating power weakens as you check up on a Buyer’s interest while a transnational Broker can better facilitate the deal. Finally, Buyer and Lenders keep a close eye on what is happening during the actual sales process to minimize risk.
Steps to Sell a Business
Every deal is unique and has different steps to get to the finish line.
The most common steps in the process are as follows:
- Decide if it’s the proper time to sell your business.
- Discuss all aspects of your business (motivation to sell, financial position, etc).
- Provide a Broker Opinion of Value after collecting financial information.
- Execute listings documents and work with your Business Broker to provide a Confidential Information Memorandum (CIM) and/or a Confidential Snapshot about your business to provide to prospects.
- Interview and pre qualify prospect buyers, setup buyer/seller meetings, share information.
- Procure offers, and locate best matches.
- Enter financial due diligence and help Buyer’s meet all Seller’s contingencies.
- Help facilitate closing documents through professional closing attorneys.
Learn About the Buyer Persona
Buyers buy businesses for many of the same reasons that sellers sell businesses. Here are just a few of the reasons that buyers buy businesses:
- Laid-off, fired, being transferred (or about to be any of these)
- Early retirement (forced or not)
- Job dissatisfaction
- Desire for more control over their lives
- Desire to do his or her own thing
A primary reason for Buyers going into business is to get out of their present situation, be it unemployment or job disagreement (or discouragement). Prospective buyers want to do their own thing, be in charge of their own destiny, and they don’t want to work for anyone. Money is important, but it’s not at the top of the list; in fact, it probably is in fourth or fifth place in the overall list. In order to pursue the dream of owning one’s own business, the buyer must be able to make that “leap of faith” necessary to take the risk of purchasing and operating a business.
Keep in mind the following traits of a willing buyer:
- The desire to buy a business
- The need and urgency to buy a business
- The financial resources
- The ability to make his or her own decisions
- Reasonable expectations of what business ownership can do for him or her
Do you have other questions?
Be sure to visit Selling FAQ to answers to the following questions.
- How long does it take to sell my business?
- How much is my business worth?
- What can business brokers do – and, what can’t they do?
- What can I do to help sell my business?
- What happens when there is a buyer for my business?
- What typically transfers in the sale of a business?
- What is the commission to sell my business?
- Why is seller financing so important to the sale of my business?
Here is a checklist of items you should get together:
- Three years’ profit and loss statements
- Three years’ Federal Income Tax returns for the business
- List of furniture, fixtures and equipment (FF+E)
- The lease and lease-related documents
- A list of the loans against the business (amounts and payment schedule)
- A copy of the franchise agreement, if applicable
- An approximate amount of the inventory on hand, if applicable
- The names of any outside advisors (CPA, Attorney, Consultant, etc)