Are you thinking about selling your business, but maybe you are hesitant to do so because you’re afraid it will be undervalued by potential buyers? Despite the economic realities, and the fact that it is still a buyer’s market out there, there are a few important techniques to ensure you get a good price for your business. Some of the most common reasons that business buyers feel empowered these days are that so many selling companies are presenting weaker financials, and there is a lack of confidence in the economic recovery. Plus, there is a lack of available capital for business buyers, so they are looking for the best deal possible. However, businesses for sale that are performing well can still fetch a decent price.
Here are some tips to improve the odds of successfully selling your business in a buyer’s market.
1) Make sure your business is priced right. In a buyer’s market it is important to price your business correctly from the start. Aiming to high can result in continuous price drops, which may lead a potential buyer to believe something is wrong with your business. Working with a valuation professional before posting a listing on a Business FSBO directory will help you establish the most realistic price.
2) Continue to run your business that is for sale effectively. Even though you are selling your business, getting too distracted by the sale could cause your revenues to decline, and there is nothing worse than giving a weak appearance to business buyers when you are in the midst of negotiating a price. Do you have the resources you need to focus on running your business and selling it at the same time?
3) Offer business seller financing. Being willing to help finance the acquisition by funding the purchase of your business. Seller financing can make the difference between closing the sale and never getting an offer.
4) Help the new business owner become successful. No one knows the details of your business better than you do. Prevent potential buyers from having second thoughts about your business by giving them a detailed roadmap for success. This may include locking in certain contracts that will guarantee future income for the buyer, securing low pricing from vendors for a period of time, and recommending certain investments the new owner should make.
Listing your business on the Bizsale.com businesses for sale by owner directory will ensure more potential buyers will learn about your listing. It will also prevent you from dealing with a broker or middleman, who may not properly represent your business to potential buyers. It may be a buyer’s market, but if you follow these valuable tips for selling your business, you can be certain no money is left on the table.