Why do business owners sell?
Business owners decide to sell for many different reasons including:
- The owner is tired or bored with the business
- A potential failure of the business if one or more owners become ill
- A preference of the owner to retire or change his/her lifestyle
- Owners wish to pursue other business interests
- There is a need within the company for new skills or new resources to enable the company to grow.
In many cases a number of influences acting at the same time bring the owner to make the decision to sell. What is clear is that the owner must have thought this through and be clear that this is his/her wish. Likewise business sellers must be very clear as to what they are going to do once the sales have been completed.
Reasons for appointing a business broker
Once the decision to sell has been made (probably one of the most important decisions a business person will ever make) it is essential that the owner seeks professional advice by appointing a professional Business broker such as FBSA.
Selling a business is a long tedious process and most business owners who have sold a business on their own will tell you it is also a very stressful process. When you should be increasing or maintaining the value of your business in order to maximise the sale proceeds all your time can be taken up with detailed requirements of the sales process.
If you are an owner trying to sell a business on your own this will very quickly become known to employees, customers, competitors, suppliers and bankers. Employees and customers will begin to leave you and competitors will capitalise on the uncertainty surrounding the sale. All of this adds to the stress involved.
At FBSA we can protect the identity of the business during the sale process and only approach approved potential buyers. Typically potential buyers also prefer to keep their involvement confidential so proper timing of sensitive announcements can be important in ensuring a smooth sale.
FBSA has the tools and resources to market your business to the biggest group of potential buyers. We are also in a position to screen prospects to make sure they have adequate resources to complete such a deal.
FBSA staff will bring all their experience in grooming, valuing, marketing and selling to the sale of your business. Our sole function is to complete the sale of your business so it is more likely the sale will be completed in less time.
The faster the sale is completed the less chance there are of employee problems, customer defection or predatory competition. The longer the sale process goes on the more nervous potential buyers become and the greater the likelihood of the sale falling through.
What sort of deal do you really want?
When you sell your business you certainly want a big payoff – however money may not be the only consideration. You just don’t want any buyer – you want the best buyer. You want the buyer who will give you the best mix of price and the other benefits you want.Selling a Business
Deal structures can be many and can change during negotiations. Do you want all cash now or will you wait longer for your payout for a better price? Do you sell the shares or the assets? How long does the buyer want you to stay after the sale or do you want a quick exit? Would withholding a minority stake in the business be of interest to you? Very often owners are concerned as how their employees will fair after they have gone. Again owners may be concerned as to the long term survival of the business. Often they do not wish to see a business they have spent a lifetime building destroyed by inept new owners.
So even though you may know your preferences you may not get all that you want when concluding a deal. At FBSA we know the right questions to ask to help you clarify your needs and understand what the market will bear.
What sort of deal do you really want?
A deal is never completed until it is finally done. Very often much of final negotiation is completed in the hours prior to completion. These negotiations can be a roller coaster, conducted in a pressurised environment in the face of a tight deadline. That is when you need the advice and security of a professional broker to negotiate and close a deal without sacrificing your goals.
Your first step if you wish to sell
If you are contemplating the sale of your business contact us for a free and confidential meeting. We want to help you get the maximum value for your business.