Buyer TutorialBefore putting your business on the market, you should fully understand the procedure involved in selling a business. The following is a very quick and very concise description of this process. Although this is a good overview, we highly recommend that you speak with one of our Florida Boss Group business brokers so that you will fully understand the process and the strategic importance of each stage.

Selling your business is probably going to be one of the biggest financial transactions of your lifetime.

Reason for Selling

First, it is very important that you know that you really want to do this and why. If you think you want to sell your business because of “money,” chances are that you really aren’t ready to sell. On the other hand, If you are selling because of retirement, health, divorce, burn-out, other business ideas/ventures or another reason oth er than wanting to “cash-out,” you are probably serious about selling. Most main street businesses that sell do not sell for the type of money that would allow someone to “cash out”. That is why serious sellers have motives other than “money”.

Realistic Expectations

A major reason why businesses don’t sell is that owners are emotionally attached to their businesses and therefore believe that their businesses are worth more than they actually are, or they do not offer seller financing. In order to be successful in selling your business, you need to be realistic about what can be expected from the sale of the business and the terms of the sale that will attract a suitable buyer. Determination of Asking Price & Terms Determining asking price and terms is a vital step in the process of selling. Pricing your business too high or too low will have adverse effects on the ability of the business to sell. Some sellers make the mistake of “testing” the market at a high price. Placing a business on the market at a price that is too high could actually result in selling it for much less than for what you might otherwise have gotten.

Determination of Asking Price & Terms

Determining asking price and terms is a vital step in the process of selling. Pricing your business too high or too low will have adverse effects on the ability of the business to sell. Some sellers make the mistake of “testing” the market at a high price. Placing a business on the market at a price that is too high could actually result in selling it for much less than for what you might otherwise have gotten. Your Boss Group business broker will create a fair-market-valuation for your business to help you determine asking price and terms. We will do this at no charge and without obligation to use our services. This information will remain highly confidential even if you decide not to use our services.

Disclosing of Skeletons

One thing you should never do is “hide skeletons in the closet.” You should disclose potential problems to your business broker up front and to buyers, in buyer/seller meetings, later down the road. If you fail to do so, much time, energy and expense could be incurred by all parties involved in the transaction, only to have the deal fall apart in the eleventh hour. Buyers do extensive due diligence and will most likely find any skeletons prior to closing. If they are informed of any potential problems up front they may decide to move along anyway. However, if they first learn of these during due diligence, they will certainly lose all trust in you as the owner, and the deal will never go through. If for some reason a buyer does not discover what you are hiding until after closing, you could then be facing serious legal problems.

Preparation for Sale

Have all financial information, lease, franchise agreements and other documents together and organized. Your Boss Group business broker will let you know what information you will need to have available. When a serious buyer does come along you will want to be ready to move along with the sale. Major delays in the due diligence process can create buyer fatigue and could jeopardize the sale.

Preparation for Closing & Ownership

During the contract period your Boss Group business broker will guide you through the entire process including working with landlords, franchisers, banks, attorneys, accountants and others in order to make the transfer of sale successful. Your Florida Boss Group business broker will develop a customized checklist of all activities which need to be accomplished prior to closing. This could include essentials such as creating a corporation, applying for a Florida Department of Revenue sales certificate, obtaining proper licensing, completing an inventory count and many other items you will need in order to complete the sale in order to be prepared to start running your business.

Maintenance of Your Business

Make sure your business is visually appealing. Keep it clean and organized. Be sure all equipment, computers and furniture are in good working condition. Painting and making other similar improvements in the appearance of the business can pay big dividends in terms of the sale. You should always continue to run your business and make decisions as if the business were not for sale. Always be cordial, and always offer top customer service, since a customer might be a prospective buyer.

The Sale Itself

Our Boss Group International broker will execute or assist you with these steps, all part of a successful sale.

  • Recasting of financial statements to reflect the true earnings of the business
  • Preparing business and other pertinent documents
  • Marketing the business in a confidential manner
  • Searching buyer databases for prospective purchasers
  • Initial pre-screening of buyers
  • Having confidentiality agreements signed by buyer
  • Sending Confidential Business Review to buyer
  • Holding buyer /seller meeting
  • Negotiating price and terms
  • Execute purchase contract
  • Beginning due diligence process
  • Preparing for closing and transfer of ownership
  • Closing
  • Fulfilling all post closing obligations to the buyer

 

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Jim Parker

James Parker
President/Business Broker
Lic. Real Estate Broker

Dear Fellow Entrepreneur or Aspiring Business Owner:

On behalf of everyone at Boss Group International, I would like to thank you for visiting us. We have provided a wealth of information on our website so you can better understand the process of buying or selling a Florida business.

 

You may want to see what businesses are currently for sale in Florida. We have provided you a direct link to the database of businesses for sale that professional Florida business brokers use to search for their buyers. Please take a look at this incredible database.

 

If you are interested in buying or selling a Florida business, contact us today so we can discuss the possibilities. As professional Florida business brokers, our conversation will remain confidential.

 

  Orlando: 1 407 329 3273 Jacksonville: 1 904 484 0150
  Tampa: 1 813 438 7934 Canada: 1 613 777 9800
  Sarasota: 1 941 421 0464    
  Miami: 1 786 472 3872