March 24, 2010: by Travis Kellett
What to Consider When Selling Your Business
Selling your business will likely be one of the largest financial events in your life, so it's vitally important that you are properly prepared when selling your business. For many business owners, the thought of selling the business they have grown and operated can be emotional and challenging.
To aid in this important and critical time in your life, Travis Kellett, Broker at Bridgepoint Business Brokers has prepared this summary of key factors for business owners to consider when contemplating the sale of their business.
What is my business worth?
At this stage, it is extremely important to understand the true cash flow of the business. A business broker takes the time to interview the ownership group, and recasts the financial statements to depict the true cash flow of the business available to a potential buyer.
Who can help me sell my business?
It cannot be emphasized enough, that the successful sale of a business relies on a carefully executed marketing plan that protects the confidentiality requirements set out by the owner. This is where a business broker can offer clear value - by finding interested parties that are truly interested in your business, and have been vetted and demonstrate the capacity to close the deal.
Is confidentiality important throughout the sales process?
A business broker will only disclose information about your business to prospective buyers that are pre-qualified, including the completion of a signed non-disclosure agreement. This ensures that the only people who will receive details about your business have been verified for their financial and managerial capacity and are qualified to purchase your business.