At Murphy Business, the process that we use to sell a business has been honed over 25+ years. Our process offers the flexibility that you need to sell on your terms. At the same time, it delivers the rigorous attention to detail you need on a transaction as valuable and complicated as a business sale.
While Murphy Business Brokers are deeply familiar with this process, most business sellers are not. When you sell a business, the process is kept confidential. Because of this, few business owners know what this process entails.
At Murphy, we strive to be as transparent as possible about this process and how it works. So if you’re getting ready to sell a business, here’s a closer look our system.
Stage 1: Preparing to Sell a Business
If you want to sell a business, you and your business broker need to be on the same page. That’s why Murphy Business brokers never rush clients into engagement agreements.
Instead, we start with a no-strings-attached initial consultation. This gives us the chance to learn about your business, but also about why you’re planning to sell and what you’re hoping to get out of the transaction. At the same time, we’re able to explain our process for how to sell a business. That way, you’ll know exactly what to expect.
After your consultation, we’ll perform a broker’s opinion of value or a business valuation. Some business brokers will often valuate a business by applying a standard multiplier based on the industry. But at Murphy, we know that this is rarely a true reflection of market value. A formal business valuation is performed by a certified valuation specialist, giving you an accurate sense of your business’s market value. This will also help us identify areas where you can increase your business’s value, should you wish to do so.
Once your valuation is complete, we’ll reconvene to discuss your valuation and your next steps. If you wish to proceed, we’ll complete an engagement agreement and proceed to the listing and marketing stage.
Stage 2: Listing & Marketing the Business
When a client agrees to sell a business through Murphy Business, our next step is to create a custom marketing plan for their business.
While creating your business’s marketing plan, we have three core priorities:
- Reach as many qualified buyers possible
- Highlight the value offered by your listing
- Maximize the chances for a timely sale
At this stage, we create a set of bespoke marketing materials. We develop an overview of your business, which will form the basis for your listings. We also prepare detailed documentation on your business, which we provide to qualified buyers after they’ve signed a confidentiality agreement.
To market your business, we target potential buyers through a mix of strategies. Typically, this involves two core marketing channels. Direct marketing strategies help us target buyers whom we’ve pre-identified as high-quality candidates. At the same time, we will list your business on national and international brokerage networks to attract the broadest and deepest possible pool of potential buyers.
We want to make sure that you’re not wasting time and resources on non-serious buyers or those without the means to complete your sale. So once your listing starts to attract interest, we diligently qualify buyers. When you sell a business with Murphy, we use our experience and expertise to narrow the field of possible candidates to the most qualified set of buyers, while maintaining the confidentiality of your sale.
Stage 3: Negotiating & Closing the Transaction
Before we sell a business, Murphy Business brokers want to ensure that the sale is a great fit for both parties. So once we’ve identified one or more qualified buyers, we’ll evaluate offers and help you identify top candidates.
After this, we’ll engage these candidates to negotiate terms of sale. Sometimes, negotiations to sell a business are relatively simple and straightforward. Other times, completing the transaction requires creativity. For example, if the business is considered a somewhat high-risk venture, we can structure the sale so that the seller accepts part of this risk. Having a business broker can be invaluable at this stage to prevent deals from coming apart.
When it’s time to close the transaction, Murphy Business will facilitate the completion of your sale. Our brokers can refer you to any financial or legal specialists whom you may need at this stage. At the same time, we will ensure that your sale is procedurally and legally sound. In many cases, we will assist the buyer by helping acquire traditional financing or a small business loan.
Selling a business can be a long and complicated process. But that process is worth it if you can sell a business at full value, while finding a buyer who will bring the same level of care and passion to the business.
Getting ready to sell a business? Call (888) 561-3243 today to connect with your local Murphy Business office.