Even high-revenue businesses fail to sell if the owner does not go through appropriate steps. For this reason, only 30-40% of business owners ever actually close sales deals.
Luckily, by understanding how to sell a business quickly, you increase your chances of turning a profit from an interested buyer. Read on to learn some tips on how you can sell your business in three simple steps.
What Should I Know Before Selling My Business?
Before selling your business, it’s important that you know exactly why you’re putting it up for sale. You’ve presumably invested a lot of time and money into its operations and growth. It’s critical that you’re 100% sure that you want to sell it and give up all authority over its operations.
Some people sell their businesses because they need to. Health problems, paying off debts, and going through a divorce are all common reasons. Others may need to sell it to retain their mental and physical well-being since running a business is stressful.
Others sell their business because they want to, and selling it quickly benefits them financially. Fast sales can sometimes make taxes and investments easier. You also may want to branch out and use the funds from the sale to start a new business.
You’re going to be asked why you’re selling the business, so make sure that you have a strong and honest answer.
You also need to understand your business’s market before selling it. Who are the most likely buyers and what do they value? How much have businesses like yours sold for in the past, and how quickly did they find buyers?
This information can help you set and manage realistic expectations. You need a quality marketing plan that understands your competition and stands out against them. You need to understand how to get ahead before closing a quality deal.
How Quickly Can a Business Be Sold?
The answer to this question depends on how well your business is doing. If your company has generated a stable profit in the past and has a high volume of clients, you’re more likely to sell quickly. This is also true if you have long-term standing contracts with vendors and partners.
Selling a business of any size usually takes between 6-12 months. There are several reasons for this, the primary one being the price that you’re asking for when you sell. If you run a lucrative business with consistent operations, you don’t want to lowball yourself even if it takes a couple extra months to find a buyer.
By taking the appropriate steps when you privately sell a business, you’ll have the opportunity to sell fast at a higher rate.
1. Prepare for the Sale
First, prepare your business to be sold to an appropriate buyer. Look into your finances and understand your exact yearly profit, additional revenue, and outstanding debts. People will ask this before buying because they want to make an informed investment.
Gather documents to prove all of your financial claims. Then, begin compiling other paperwork that buyers will want to see. Interested parties will want to see the necessary licenses, permits, articles of incorporation, and even accounting and tax records.
Once that’s done, it’s time to determine the value of your business. An appraisal happens when an expert analyzes and evaluates your finances and goals to see what it’s worth. The valuation will let you know how much money you can make when you sell your business to the right buyer.
2. Use a Quality Business Sales Platform
You’ll need to find someone who’s interested in your business’s nuances in order to sell for the highest possible price. This means partnering with a company that will go beyond business valuation. You need a high-quality mergers and acquisitions company that will give you a variety of business broker services.
Gulfstream will take you through every step of the sales process. You’ll get a financial overview, goals, and a better understanding of your motivation for selling. Once we have all the details of your business, we’ll help you figure out the right time to sell for a positive market outlook.
We’ll then help you market your business on a wide range of channels. This process involves creating a short two-to-three-minute video that showcases the benefits of your business.
We’ll vet interested buyers, sign and submit confidentiality agreements, and keep you protected every step of the way.
3. Negotiate and Sell
Once everything’s in order, we’ll identify the best possible buyer and work with you to determine whether they’re the right fit. Once you approve, the third step in the process of selling a business quickly is negotiation.
Negotiating a business sale requires having an ideal sales price, knowing your bottom line ahead of time, and understanding how many times offers usually are rejected by buyers in your industry. You’re not going to get the first price you ask for, and neither is the buyer.
This requires a lot of conversation, and Gulfstream understands the needs and personalities of everyone involved in a negotiation. We’re experts who have been closing good deals for years, so you don’t need to worry about ironing everything out on your own.
Once the negotiations conclude, all that’s left to do is close the sale. It’s critical to have all your paperwork in order at this point. Make copies of everything for yourself and all other involved parties so that you can prove that the sale took place legally if asked.
Beyond How to Sell a Business Quickly
Now that you know how to sell a business quickly and turn a profit, it’s time to begin working with experts to privately close a deal. Our team is committed to helping businesses through all stages of the mergers and acquisitions process, including pairing sellers with interested and serious buyers.
We’ll assess and evaluate your business to see what it’s worth. We’ll help you prepare it for sale and connect with potential buyers. Contact Gulfstream to begin the process of selling your business the right way.