12 Steps to selling your BUSINESS Exit Strategy

Posted on Posted in Uncategorized

12 Steps to Selling Your Business

Vincent Murphy Business Broker
Vincent Murphy Business Broker

1. Give us a call or send us an email.  For some, this can be the toughest step of all. We know that making the decision to sell your business is not easy. As a business owner you have surely become attached to your business, both financially and emotionally. People make the decision to sell their businesses for a variety of reasons, the most common of which are retirement, starting a new venture, health problems, partner issues and family concerns. Whatever your reasons are, we respect how difficult it can be to take this very important step.

2. After we have communicated, we’ll set up a discreet and confidential meeting if you think that your company and our services may be a good match. We usually hold this meeting at either your business so you can show us around or we meet at our office in Sudbury, MA.  We’ll get to know each other better at this meeting. We understand that you need to feel comfortable with us. This will give you an opportunity to learn more about us and to discuss the business sales process.  It is also a way for us to learn more about your business and you. Every business is different and no business is perfect. We’ll use this time to begin strategizing about what we need to do to really maximize the sale value of your company.

3. We’ll discuss a preliminary valuation of your business, (if we haven’t done so already), at the first meeting. We’d also like to get an idea of what you think your business is worth. We can give you some feedback about what we think about the current market for your business. Who are the buyers? What skills will they need? How will they pay for the business? What can you expect down the road? We’ll answer these questions and more!

4. Feel free to ask us questions at this first meeting. Nothing is off limits. There are no secrets. The more you know, the better we can work together. You should always feel that you can communicate with us about anything that is of concern to you.

5. We will construct our own financial analysis of your business. Keep in mind that your accountant prepares your tax returns with the goal of showing as little profit as possible in order to reduce your taxes. We do the exact opposite and reconstruct your tax return or profit and loss statement to show the TRUE profit your business makesIf you don’t toot your own horn, no one will do it for you! Its up to us to find out what is great about your business and make sure that prospective buyers will learn about it.

6. We’ll create a solid marketing piece for your business that will describe how your business works and what is truly GREAT about it. By now we have learned a lot about your business so we can get started on this right away. The marketing piece that we design will really need to INSPIRE buyers to want to take the next steps in pursuing the purchase of your business. Your business needs to stand out from the others that the buyer is considering. You will help us in this process by supplying valuable information about the various aspects of you business.

7. We’ll begin advertising your business VERY CONFIDENTIALLY. All buyers will be required to sign our confidentiality agreement. We will also qualify the buyers in order to get a feel for their financial ability to purchase your business.  Only serious and qualified buyers will ever learn that your business is for sale. Maintaining the confidentiality of your business sale is our TOP PRIORITY.

8. We’ll also market your business to our database of 4000 business buyers in the Massachusetts area. These are REAL buyers that we have communicated with in the past. (They aren’t from a purchased list.) We know many of these buyers personally. The database includes buyers for every type and size of business. This is a great way to attract simultaneous interest in your business.

9. Set up Meetings with the Best Buyers. As we begin working with the most suitable buyers for your business, we’ll most likely set up meetings so they can meet you and ask you questions about your business. These meetings are always discreetly planned so that your employees never find out you are selling your business. We frequently meet after hours or off-site if there isn’t a convenient way for us to talk during regular hours at your business. We are always present at these meetings because we want to make sure that the meeting is run effectively and productively.

10. The offers for your business will start coming in. If we’ve done a good job of pricing, describing, and marketing your business, there will be interested buyers. As the buyers contact us we send them a confidentiality agreement and buyer registration form if we don’t have one on file already. We also speak with them at length to get a feel for what they are looking for and to make sure that your business is a good match for them.

11. We will assist you in negotiating with your buyers. We are your agent and we work for you. We’ll help you negotiate a deal that really works for you. Using an intermediary ALWAYS helps you negotiate a better deal for your business.

12. We work with the attorneys and accountants, put out the fires and do what is necessary to make sure the deal closes. We work on a success fee basis, so you can be sure that we will be highly committed to a successful conclusion of your sale.

Still have questions? Call us today and we’ll chat!

Note: All your company information will be handled discreetly and responsibly and we are happy to sign a confidentiality agreement with you. Please inquire about this in your first communication with us.

Leave a Reply

Your email address will not be published. Required fields are marked *