Most business owners fail to realize they must plan for the sale of their business. According to recent statistics, only 20-33% of business complete the sales process. A study conducted by ROCG, a company that specializes in business transitions showed 84% of the respondents to their survey indicated that the proceeds from their transactions were essential to their future.
Topics: selling business action plan
Statistics show that 50 percent of new businesses fail within the first year. That number jumps to as high as 95 percent within five years. Knowing this, if you’re currently running a successful business and raking in profits, it has tremendous value. And even though things might be going quite well, this is exactly why selling your business makes sense - even when things are good.
Topics: Business For Sale, purchasing a business, Buying a Business, selling business action plan, business valuations, Selling in Business in Philadelphia
If you're thinking about selling your business, it's best to plan ahead and create a company that will be truly appealing to a potential buyer. The process of taking a bit of extra time and effort to dust off your systems and bookkeeping will pay off handsomely by adding to your company's appeal and value.
1. Catch up on your bookkeeping. The first question a potential buyer will want to ask is how much money he'll be able to make by owning and operating your company. The more complete and clear your records, the better he'll be able to answer that question.
2. Discuss your business sale with your landlord. If your company depends on a particular location or you have made expensive leasehold improvements, a potential buyer will want to know that he can keep the business where it is. Ask to put a clause in your lease establishing that it is valid even if you sell your company, and make sure that your landlord is on board with the terms of your potential sale.
3. Write an employee manual. If you're selling a business, it's important to create a document that a subsequent owner will be able to use to train employees. A training manual puts this information into a form that he will be able to use to hire new employees and train them in a manner consistent with your current systems and policies.
4. Write a business plan. Even though you're getting ready to move on, a business plan will provide a road map for a new owner, and show him your company's potential as well as the milestones you have already achieved.
5. Judiciously involve a few key employees in the sale process. If the value of your company is tied up with their expertise, a potential buyer will want to know that they are on board with a business sale.
6. Evaluate your systems. The better your systems, the more they will work to your advantage in the process of selling a business. Make sure company operations are smooth and efficient. Measure outcomes and, whenever possible, work to improve them.
7. Take a vacation. Although it's not a great idea to go away for an extended length of time if you're planning on selling a business, a brief vacation will provide you with valuable information about how well your company functions in your absence.
Topics: Selling your business, business planning, selling business action plan
Building a business is an enormous investment. It is not just monetary, but an investment of passion and tremendous amounts of time and effort. When the business is near the peak of success, why not look at cashing in on that investment?
There are seven good reasons below to look into selling a business now. Buyers exist who have various reasons for investing in an established business.
It takes preparation, commitment and advice from trusted adviors to hone a business into something that shows a buyer the potential future value of what has been built. Depending on the size and type of business some or all of these reasons may apply.
The market is attractive for many buyers. Selling a business now can bring a premium price if the owner is well prepared. Preparation to make a business more attractive should start now. Making the business as attractive as possible increases the potential for selling a business at a peak profit.
Topics: Business For Sale, Selling your business, business planning, selling business action plan, business valuations
What will save our economy? Deals!
Topics: Selling your business, business planning, selling business action plan, business valuations
In a business sale transaction, the parties, through their negotiations and discussions, initially may reach a meeting of the minds on the basic terms of the deal such as price, timing and other major issues. The next step is typically for one of the parties to have his or her attorney draw up the definitive sale documents that will be signed as part of the transaction. However, the drafting process can sometimes be costly and time consuming, and thus it is often advisable for the parties to sign a “letter of intent” or “term sheet” to memorialize the basic terms of the deal and to make sure that both parties are clearly in agreement on those basic terms.
The US economy is driven by entrepreneurs - small and mid-market businesses, more than 20 million of them, many of them privately-owned. It is often difficult for owners to convert all of their hard work and ingenuity into an equity event. It is a complex and time-consuming process. Stony Hill Business Brokers has the experience and expertise to assist with selling a private business successfully.
All of the partners at Stony Hill Business Brokers have been entrepreneurs in private businesses and have had experience managing and selling their businesses. We understand the grind of running your own show and the uncertainty of getting the most value for the business.
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