Sell a Property
If you’ve come this far, then selling your business has aroused enough curiosity that you are taking the first step. You don’t have to make a commitment at this point; you are just getting informed about what is necessary to successfully sell your business. This section should answer some of your questions and help you through the maze of the process itself.
The most widely asked question! The answer is, “whatever a buyer is willing to pay for it”. Before you assume that you know how much that “should be”, why not do one of two things first? Either take the opinion of value test to see if the value of your business could be greatly improved with some coaching or meet with us to see what the value is today in the current market.
The value of the business is really what a buyer will pay for it. Most of the time it is based on a mathematical formula of the seller’s discretionary earnings. However, there is some give and take, depending on the particulars of your business. Calling a professional will guide you to what the true sale price should be for the business.
There really isn’t a rule of thumb on how long it will take. For almost every business there’s a buyer out there, it’s just a matter of time until that person happens to see the ad and responds. That’s why it’s so critical to be listed with a broker that does heavy marketing. The internet is a great tool for marketing but unless you are on the first page, you often don’t get seen. California Business Brokers® works very hard on marketing your listing to as many buyers as possible, to give it the best chance of selling.
Other factors that have an impact on how fast it sells are things like; ”How many people could run this type of business?” The fewer the number, the longer the sale. Also, how well it’s priced is a huge factor. Businesses that are overpriced tend to sit on the market for a long time, some never sell. The real key to selling it will be to price it right, market it well, organize the paperwork as much as possible and work with California Business Brokers®.
Before you even think about placing your business for sale, there are some things you should do first. The first thing you have to do is to gather information about the business.
Here’s a checklist of the items you should get together:
- Three years’ profit and loss statements
- Federal Income Tax returns for the business
- List of furniture, fixtures and equipment
- The lease and lease-related documents
- A list of the loans against the business (amounts and payment schedule)
- Copies of any equipment leases
- A copy of the franchise agreement, if applicable
- An approximate amount of the inventory on hand, if applicable
- The name and contact information of any outside advisors
Prospective buyers eventually will want to review your financial figures. Many sellers are overly concerned with the bottom line on the tax returns but that doesn’t always tell the real story of a business. Buyers want to know if they can make a living running the business and it’s our job to organize the information in a clear and concise way for buyers to make that decision.
Selling a business can be tricky if you’re not in the right hands. Our motto is, “Deal with Professionals – Get Professional Results”. All brokers are not the same, and we feel that it’s imperative to deal with an ethical, committed professional brokerage to get the results that you desire. At California Business Brokers® that’s exactly what you’ll find.
Please call us to see why CBB is the right choice for you.