out. Losing
either prior to a sale will lessen the value. Research sales that
are similar to yours and price your business accordingly.
Take care of repairs
Any maintenance issues that need attention should be addressed before putting
your business on the market. You want to make your business more attractive to
anyone possibly interested in buying your business. Seeing things that need to
be repaired can often make
them question the condition of the things that can’t be readily
seen.
Prepare a purchase agreement
Have your purchase agreement put together prior to finding a buyer. This will
expedite the buying process and keep the buyer from losing interest due to
delays. The seller can always fill in the blanks once an agreement has been
reached.
Have your support documents prepared
Ever heard of the saying, strike while the iron is hot? When selling a business,
that means to be prepared with the information that any seller would need to
consider if interested. Income statements, profit and loss statements, and
leases are several examples. Keep the prospective buyer excited, not waiting.
Talk to your lessor
It is not uncommon for a solid sale to be lost due to a lessor refusing to
assign a lease. Know what your remaining lease term is and see if a new lease is
negotiable before putting your business up for sale.
Market your business
Your goal should be to reach as many prospective buyers as possible. A small
percentage of potential buyers will see an ad in your local paper. It is a good
place to start, but also look for other alternatives.
Qualify prospective buyers
You want to make certain that a prospective business buyer is financially able
to purchase your business before you invest a lot of your time or pass along
confidential information.
Require a deposit
Have you prospective buyer put a little skin in the game. A buyer who is willing
to put down a sizeable deposit is serious prospect. Limit your responsibility.
Have a neutral escrow holder hold the deposit.
Prepare the details
Be certain that you and your prospective buyer have made an agreement on the
purchase price and terms before turning over your financials. The seller should
give the buyer plenty of time to review all facets of your business, but it is
also imperative that both parties protect themselves.
Get it in writing
Avoid disagreements, short memories and potential lawsuits. You want to make
sure that all of the details agreed upon regarding the transaction are very
clear and in writing.
Owner financing
If you plan on financing the part or all of the sale, protect yourself and your
note by following all procedures such as filing promissory notes, security
agreements, etc.
All of Matrix Business Investments listings are confidential.
More information will be made available to financially qualified buyers
after signing a confidentiality agreement.
