You conceive an idea, plan, and invest in implementing that plan and finally, you accomplish your dream of starting your own venture. You spend years building the business to what it is today, but somewhere along the journey, you are faced with a situation wherein you are forced to take a decision to exit your business.
Once you are clear about your decision, next you have to start planning your exit strategy so as to keep the business running while transferring ownership. It’s been an emotional ride for you and handing over the ownership is definitely going to be difficult. Hence, most of the small business owners prefer selling their company to a buyer who shares a similar vision and passion for the company and its growth. They want to exit with the confidence that the new owner will do justice to the company. So, how can you ascertain that the buyer fits your bill? Here are a few tips to select the perfect buyer for your business.
Like any sales strategy, if you know your target audience, in this case, buyer, you can design a listing that will attract only those kinds of buyers you want to connect with. You can consult with professionals at Simplified Marketplace devise a listing strategy.
There is no harm in probing as to how your prospective buyer decides to run the business. After all, you are looking to bequeath the keys of your establishment to a person who is completely unfamiliar to you. If you have a vision for your company even post your exit, you need to know if the new owner will be able to or intends to work in that direction.
A very important aspect of the deal is how much money you are going to receive considering all the possible deductions like payment of debts, tax cuts, and the cost of transaction. You must be planning for retirement, and in that case, you must ensure that you end up with an amount to live your retirement years with grace. And, if you still are far from retirement, you need to have an alternate source of income preplanned. At the end of the day, you need to be at peace with the transaction amount and not come to regret your decision in the future.
In order to ensure you have a profitable transaction, you have to be prepared for the process of ‘Due Diligence’. The person who intends to buy a company will always look out for reasons to reduce your asking price. This generally occurs, during and post the process of ‘Due Diligence’. So, you have to be smart enough to anticipate those areas of possible reductions that a buyer may point out in the course of the review. If you have considered all those aspects and put up a price tag with enough margins to still achieve your expected amount after the reductions, you will get your desired results. Be prepared to defend your asking price confidently.
There have been instances of transactions that have been called off from the verge of completion. This usually happens due to either miscommunications or an inability to fulfill the requirements. If an individual wants to buy a company, the person needs to possess the proposed amount or proof of loan sanction in case of a bank loan, ready beforehand. It is the duty of the seller also to ensure the same at the outset itself. Never proceed with a buyer who offers to buy without solid proof of the finance deliverable; else all the efforts you and your finance team invested in the preparation of the audits will be for nothing.
No matter the number of years you spent building a business, but selling it is a whole new ballgame. So do not presume, you can manage it single-handedly. There are so many elements and considerations to account for, that it gets very stressful and frustrating when matters go out of hand. Hence, it is always advisable to reach out for professional help in such matters of business. You can always research the best professional business consultants, especially online since it is more convenient and one of the best ways to sell a business. Buying and selling a business is a complicated game. Do not complicate it even more out of lack of sufficient knowledge about the same. You can also consult with your personal accountants and lawyers to get a holistic view of how things stand between you and the buyer based on the proposal for purchase. But, leveraging the expertise of seasoned professionals at Simplified Marketplace adds to your confidence and helps in smooth transactions and transitions from the business.