Be sure to read part 2 once you have finished part 1.
Selling a business requires dedicated professional attention. It demands a high level of expertise that only those involved in it on a regular basis can truly make it come together. The intricate details of a sale can cause a deal to fall through the cracks if you're not experienced in all phases, even if you're a savvy business owner.
1. Establishing a Realistic Sales Price
Perhaps the most important factor in selling a business from a position of strength, is to establish a realistic sales price, early on. The Broker's Opinion of Most Probable Selling Price involves the pricing of a business based on industry acknowledged valuation techniques.
This opinion of value benefits from the expertise of the Broker and their knowledge from past deals to price a business at an achievable level. This experiential knowledge, combined with technical knowledge allow for realistic pricing, with the ultimate goal of achieving maximum fair value for a business.
A Broker can substantiate the true value of a business, and above all, use this substantiation to prove to prospective buyers the reasons for such value. This in-depth knowledge of a deal is invaluable as the Broker is equipped with the knowledge to structure a sale for the benefit of both the buyer and seller.
Establishing a realistic sales price is key to the successful sale of a business.
2. Current Marketplace Knowledge
Selling a business isn't just another task that you add to your "to do" list as an owner. Not only does it take time, knowledge of a process that yields maximum results, technical valuation knowledge and writing skills to present a business in its best possible light - but it requires knowledge of the marketplace.
Finding a buyer with both the managerial and financial capacity to purchase a business can be a difficult task. Buyers don't "advertise", you must find them. Brokers surround themselves with databases of buyers that they are in contact with - equipped with knowledge of a buyers industry interests, experiences and financial capabilities.
This, combined with business contacts, association contacts and various other proven resources make them well-networked and marketplace experts to properly expose a business for sale.