The Most Important Questions You Should Ask Before Selling Your Business


 

Buy a business

Who is the ideal buyer to sell my business to? This very first question is the most important part of parting with your brand and moving on, as it determines whether or not you’ll get the amount you deserve. Business acquisitions can be a tricky field to navigate for the uninitiated. There’s just so much to take into account! How long does a business sale take? How much is my company worth? All these questions and more will be explored below to give you a better idea on what you’re up against. Knowledge is power, after all, and you can never go wrong with the basics.

How Are Small Businesses Doing?

You probably hear a lot about small businesses. Why not? They’re a great way for people to take control of their personal branding and get their foot in the door. There are nearly 28 million small businesses operating in the United States alone. According to a report provided by BizBuySell.com, nearly 8,000 small businesses were sold just the year prior. The market is a dynamic beast and certainly not one that yields to the faint of heart. “Who is the ideal buyer to sell my business to?” Let’s find out.

Why Do People Sell Their Business?

Selling a business can be a difficult decision. Putting up all that hard work up to market? Some even believe it’s a bad decision that couldn’t possibly yield anything positive. The truth, however, spells out a much different story. A 2016 report saw 60% of the surveyed business brokers reporting that more businessowners were looking to sell. An additional report by the National Association Of Small Businesses saw the top three challenges of running a business including health insurance benefits, decline in customer spending and economic uncertainty.

How Do People Determine Their Business’ Value?

Finding the right buyer means first asking, “How much is my company worth?” That way nobody’s time is wasted and you can get on the fast track to moving on with your life. For those unsure as to where their business stands amid the pack, a business valuation report can clear up any questions and give you some hard figures to go off of. A business valuation is an attempt to estimate the company’s current value as well as its likelihood of future cash flows. It uses a combination of asset-based approach and market value approach to determine this.

Do I Need Help Selling My Business?

Some people are familiar with the question, “Who is the ideal buyer to sell my business to?” Others are doing this for the first time. A 2014 survey including a spread of different business owners revealed that 30% of business owners had recently discussed exiting their business with their spouse or family members, while only 14% had actively spoken to an attorney. Whether or not you need help is best determined by your confidence level. Better safe than sorry, as the saying goes!

Should I Sell My Business?

It’s estimated that, at any given point in time, there are 15 prospective buyers on the market for every one business listed for sale. That being said…do you want to sell? If you’re finding yourself adrift in a sea of competition with nowhere to set down your anchor or recent events have you struggling to maintain day-to-day obligations, selling your business may be the light at the end of the tunnel. There are professionals who can help you value your company and point you in the right direction, with the market ripe for buying, to boot.

Don’t linger on should-haves and would-haves any longer. Make a decision that’s meaningful and move forward this year.

Leave a Reply