How to sell a business? That simple question explodes with so many variables. Do you want to sell to family or a friend? Do you want to sell today, in a month, or sometime ‘soon’ with no firm date on when ‘soon’ will start or finish. What about the question that relates to ‘how to sell a business’ and that is ‘how much do you expect or want for your business?’ Do you want all cash upfront or are you willing to carry some of the finance.
So that seemingly simple question, ‘how to sell a business’ suddenly comes with quite a few more complications.
Relax and breathe … . Below we have provided skills and techniques that are recommended for use to enable all sellers to successfully answer the mind boggling dilemma of ‘How To Sell Your Property In Georgia.”
The most important first step is to understand the motivation of the seller. Specifically, their timetable including when they want to start to sell their business.
Selling a business is not a quick task that can be done in a week or two. It generally takes between 6 to 12 months to sell a business with an average sale time of 8 months, if it sells. The most surprising piece of data is that only 25% of businesses actually sell. To put it bluntly, 75% of businesses close down.
Once the motivation and timeline of the seller is clear, the next step is to get the seller and the business ready for sale. Too many sellers approach the selling of their business very timidly with no clear direction and failing to embrace the selling process.
Selling a business is not an easy journey as it touches a myriad of decisions that are part of owning and operating a business. These include not only the main decision-making realms concerning ongoing and daily operations, finance and accounting, and business management, but also the raw emotions of the seller/owner. These seller emotions include their fear of leaving the business, whether customers will continue to come, whether the employees will stay, if the legacy of the business will continue, and many more.
Once there is clarity on the above two steps, it is now time to drill down into the details of the business and understand specifically what is for sale. Too many sellers go to market to sell a business without having the necessary documents ready, and just as importantly, failing to get a professional review to make sure that the required business documents are factually sound, up to date and accurate.
Buyers do not like surprises, or matters outside their control. Initially they may have some patience, but waiting too long creates a fear they are missing out on other opportunities or that it is a sign that this is not the right business for them and that they should move on and look at other opportunities. The window of time a buyer is prepared to look and buy a business is very small — even a slight delay can make the difference between buying and not buying the business.
Once the offer is negotiated and accepted by both parties, the transaction moves into due diligence where the buyer is available to verify and validate the representations of the seller and get access to all the sensitive documents they need. This part of the transaction also requires keeping things moving forward with items such as obtaining a new lease or assigning the current lease.
The final step is the move into escrow where money is available and payable to the various parties in, or connected to, the transaction. Escrow also ensures the proper handling of the legal title for the business and allows the business assets to correctly change hands.
Selling a business is not a sprint, and at different times in the transaction may seem more like a never-ending marathon. Another sage truism regarding selling a business is that most business sales transactions die at least three times before they close. That is, at different points in the transaction the buyer gets cold feet, or the seller develops purchasing doubt because things are not going the way each part expects. Hence confirming my initial warning — a response to the eternal question of ‘How To Sell My Business’ is definitely not easy to answer.
For assistance and more information on how to sell your Georgia business go to Bottom Line Management, LLC at https://www.botline.com,
or call at 470-990-0160. The experts at Bottom Line Management, LLC have over 30 years of experience providing stellar business brokerage services, and are highly skilled regarding business transactions in the State of Georgia. Contact Bottom Line Management, LLC at https://www.botline.com or 470-990-0160 to sell your Georgia business today.