Listen to the Episode Below:
What does it take to get a small business ready for the big sale? Are your expectations on Planet Earth? How can you minimize the headaches at each stage so you can streamline the process?
In this episode, business broker Carey Davis puts to rest a lot of myths and moonbeams you hear about selling a business, and shares the four steps in the process to closing a deal that’s smart for both buyer and seller.
Four Steps to Sell Your Business…
- Know the process. It doesn’t happen magically … or overnight. The four steps are: having a plan, finding a qualified buyer, negotiating the deal, and closing the deal (see infographic, below). And don’t go out of order.
- Create a plan to sell your business. Don’t just wake up one day and say, “I’m ready to sell–where are the buyers?” The way you run your business is hugely affected by whether you plan to sell it or close it when you’re done. If selling is on your radar (even years down the road), keep good, clean books. Pay your taxes. Buyers love that, and it will fetch you a higher price.
- Stay focused on running your business. It’s tempting to pour your energies into dealing with sale prep and details. Don’t. That’s what a business sale team is for. Your job is to encourage record sales, minimize costs, and produce trends that show the business has a stable future. You can’t do that if you’re stressing about the sale.
- Appoint a quarterback for the process. Often, that’s a business broker, who seeks out qualified buyers. And “qualified” means more than credit-worthy: they need to know the industry, understand the clientele, and have good chemistry. Business brokers also make sure that all loose ends between lawyers, landlords, accountants, and business owners are tied up before closing.
- Clean up your messes beforehand. Everything comes out at closing, so pay off your debts, resolve pending litigation, and get clearance from your landlord (if applicable).
Carey Davis was chock-full of helpful info, so grab your pen and paper and get ready to take notes on this episode of Cash Out BIG!
Carey Davis is a partner in Transworld Business Advisors of NY. Transworld is the nation’s largest business broker and franchise consultant. He has a strong background in advertising and marketing- a mainstay of a successful business broker. Carey was general sales manager and general manager of the highest billing radio station in the US (1010 WINS) and the most listened to radio station (La Mega WSKQ-FM). He was head of multi-cultural ad sales for ABC Radio and pioneered the first Spanish language motivational channel on Sirius XM.
Lady Luck rides with hard work.” ~ Carey Davis
Learn More about Carey Davis:
The 4 Steps to Selling a Business (see infographic, below)
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