Successfully Sell Your Business In A Down Market

ECONOMIC PAUSE

You've put a lot of work into your business, but now it is time to retire. For some time now you've been thinking about handing off all that you've built up, selling your venture to someone who has the drive and energy to capitalize on your success.

But, there is something that concerns you and that is the state of today's economy. While you managed to keep your business going strong despite the current economic downturn, you realize that finding a buyer now especially one who will pay you what your business is worth, could be very difficult. After all, if credit has dried up over the past few months, just who is sitting on enough cash to buy you out?

TIPS ON PREPARING FOR THE SALE

Fortunately, you won't have to wait a few years until the markets improve in order to list your business for sale. As in any kind of economic difficulty, there are always sellers and there are always buyers. You just need to find someone who understands your business, is interested in running it, and has the requisite funds (or financing) to buy you out.

To that end, using the services of a business broker can be a smart move, as a broker will allow you to concentrate on running your business while he screens potential buyers. A certified business broker can help you every step of the way including providing the following services to you:

• Getting your business ready for sale – Although the physical part of a business is important, it is the financial aspect that receives the most scrutiny from buyers. A broker will examine your financial records for the past three years and make recommendations on reducing inventories to manageable levels, paying off short and long term debt, resolving customer complaints, showing a history collecting receivables, and ensuring that your credit report and records are solid.
  
  
• Valuating your business – To make sure that your business adequately reflects its current market value, a certified broker will examine your company's assets, sales, cash position, and market trends to come up with a salable value to move your business.
  
  
• Marketing to the right pool of buyers and negotiating a sale – A certified broker is connected to people who might be interested in your business or can help you market your business by formulating the right selling strategy. Once potential buyers come forward, your broker will screen interested parties to identify those who have the financial means and interest to buy your business.
  
  
• Ensuring due diligence and bringing the sale to a successful close – When a buyer makes an offer for your business and accepts it after performing due diligence, then your broker will close the sale and transfer the business to the new owner expeditiously.
  

USING A BROKER

Of course, the services listed above are a general outline, therefore your requirements may be slightly different. In any case, a certified business broker can provide an action plan tailored specifically to your business, one that can remove the burden of attempting to sell the business yourself.

Retaining the counsel of a certified business broker is always a wise move. In today's economic climate a broker's advice can save you time and maximize your profits, giving you the professional guidance you need to successfully transfer your business to a new owner.