Place a reasonable
price on your business
Since an inflated figure either turns off or slows down
potential buyers, rely on your business broker to help you arrive
at the best "win-win" price.
Carry on "business
Don't become so obsessed with the transaction that your attention
wavers from day-to-day demands, affecting sales, costs, and profits.
Since the selling process could take as long as a year, the buyer needs to keep
seeing a healthy business.
Engage experts to insure confidentiality
A breach of confidentiality surrounding the sale of a business can
change the course of the transaction. Expert intermediaries can
channel the process and the parties involved to keep the sale within safely silent
Prepare for the sale well in
Be sure your records are complete for at least several
years back and do all pertinent legal or accounting "housecleaning"--as
well as a literal sprucing-up of the plant or store.
Anticipating information the
buyer may request
In order to obtain financing, the buyer will
need appraisals on all assets as well as information to satisfy
environmental regulations (when real estate is concerned).
Achieve leverage through buyer
This can be tricky; you are wise to let your business
broker, as a third party, create a competitive situation with buyers
to position you better in the deal.
Don't be the kind
of seller who wants all-cash at the closing, or who won't accept
any contingent payments or an asset transaction. Depend on the advice of your
intermediaries--their knowledge of financing and tax implications-- to keep the
deal sweet instead of sour.
You're used to being your own boss, but be prepared to learn that
the buyer may be used to having his way, too. With your business
broker's help, decide ahead of time when "to hold" and
when "to fold."
Keep time from dragging
down the deal
To keep the momentum up, work with your intermediary to
be sure that potential buyers stay on a time schedule and that
offers move in a timely fashion.
Be willing to stay involved
Even if you are feeling burnt-out, realize that the buyer may want
you to stay within arm's reach for a while. Consult with intermediaries
to determine how you can best effect a smooth transition.