{"id":752,"date":"2020-03-04T09:39:40","date_gmt":"2020-03-04T14:39:40","guid":{"rendered":"https:\/\/murphybusiness.com\/blog\/?p=752"},"modified":"2020-03-04T09:39:41","modified_gmt":"2020-03-04T14:39:41","slug":"how-to-sell-a-company-for-the-first-time","status":"publish","type":"post","link":"https:\/\/murphybusiness.com\/blog\/how-to-sell-a-company-for-the-first-time\/","title":{"rendered":"How to Sell a Company for the First Time"},"content":{"rendered":"

Unfortunately, it\u2019s all too common for small business owners to make mistakes when they decide to sell their business. Not only can these mistakes lead to leaving money on the negotiating table, but they can also result in the loss of years of long-term investment opportunities. If you\u2019re an entrepreneur, you may know how to build a successful business, but are likely unsure about how to sell a company for the first time.\u00a0<\/span><\/p>\n

If you find yourself in this position, you\u2019ll want to ensure that the decisions you make enable you to enjoy the benefits of all the hard work you\u2019ve put into building your business. With the help of a business broker, you can have a successful business sale that matches the success you\u2019ve had as a business owner.\u00a0<\/span><\/p>\n

At Murphy Business, we understand the ins and outs of the selling process and are committed to helping our clients make the best sales possible. Read on to learn more about how to sell a company with the guidance of one of our business brokers.<\/span><\/p>\n

Selling Your Business, Step by Step<\/span><\/h2>\n

If you want to sell your company with no regrets, make sure you don\u2019t skip any of the following steps:<\/span><\/p>\n

Step 1. Gain a big-picture understanding of the process. <\/b>Before getting started with a business broker, it\u2019s worth doing some research to understand the process for mergers, acquisitions, and business valuations. While you don\u2019t have to learn how to sell a company completely on your own, you\u2019ll only benefit from putting in time to gain a big-picture understanding of the process you\u2019ll be going through. Key terms to get your head around include the following:<\/span><\/p>\n

    \n
  1. \n
      \n
    1. \n
        \n
      1. \n
          \n
        1. Valuation<\/span><\/li>\n
        2. Offering Memorandum<\/span><\/li>\n
        3. Letter of Intent<\/span><\/li>\n
        4. Term Sheet<\/span><\/li>\n
        5. Due Diligence<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n

          Step 2. Give yourself plenty of time to find the right buyer. <\/b>Selling a business doesn\u2019t happen overnight. If you set an unrealistic deadline for yourself, you may find that you end up selling to the wrong buyer. Simply completing a business valuation and drafting the Offering Memorandum can take a month or two. After a business is on the market, it often takes 6-11 months to be sold. Negotiating a close also requires plenty of time\u2014budget 2-3 months for this important step.<\/span><\/p>\n

          Step 3. Get your financials in order. <\/b>Prevent red flags from popping up during negotiations by dealing with your financials now. You can enlist the help of an accountant to gather business tax returns for at least the past three years and ensure that all income has been accounted for. As you\u2019ll need to have clean financial statements ready for potential buyers, doing this in advance of listing your business is sure to save stress and complications down the road.<\/span><\/p>\n

          Step 4. Complete a professional business valuation.<\/b> In order to have a realistic estimate of what your business is actually worth, you\u2019ll need to employ the services of a business appraiser. They\u2019ll create a review of your business that covers a wide range of factors, not just current revenue. The appraiser will consider everything from inventory and assets to outstanding debt, threats, and potential opportunities. With Murphy Business, you\u2019ll have access to <\/span>professional valuation services<\/span><\/a> that provide an accurate understanding of your business\u2019s value.<\/span><\/p>\n

          Step 5. Prepare an Offering Memorandum.<\/b> The Offering Memorandum is a full presentation of your business, including operations, staff and management, significant accomplishments, current risks, and financial details. This is the file that potential buyers will be looking at when making the initial decision to seek more information about purchasing your business. Our business brokers will help ensure that your Offering Memorandum is a robust portfolio that will appeal to serious buyers.<\/span><\/p>\n

          Step 6. Focus on the deal, not the selling price.<\/b> Once you\u2019ve found a buyer, the process moves to the negotiation stage. Many small business owners fall into the trap of setting an unrealistic price tag that brings talks to a standstill and causes buyers to drop out. At this point, it\u2019s crucial to understand that a high selling price isn\u2019t the only benchmark by which a successful sale can be judged. There are other important details to consider, including the overall structure of the agreement, tax treatments, and intangibles. With the guidance of a <\/span>business broker<\/span><\/a>, you can settle on a deal that leaves you satisfied in the long run, even if the selling price isn\u2019t quite what you\u2019d hoped it would be.<\/span><\/p>\n

          If you\u2019re ready to learn more about how to sell a company for the first time, Murphy Business can help. Don\u2019t hesitate to call (888) 561-3243 today to speak with a business broker near you.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

          Unfortunately, it\u2019s all too common for small business owners to make mistakes when they decide to sell their business. Not only can these mistakes lead to leaving money on the negotiating table, but they can also result in the loss of years of long-term investment opportunities. If you\u2019re an entrepreneur, you may know how to … Continue reading “How to Sell a Company for the First Time”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":666,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[50],"class_list":["post-752","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage-services","tag-how-to-sell-a-company"],"yoast_head":"\nHow to Sell a Company for the First Time -<\/title>\n<meta name=\"description\" content=\"Learn how to sell a company for the first time with the step-by-step assistance of a business broker from Murphy Business.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murphybusiness.com\/blog\/how-to-sell-a-company-for-the-first-time\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Sell a Company for the First Time -\" \/>\n<meta property=\"og:description\" content=\"Learn how to sell a company for the first time with the step-by-step assistance of a business broker from Murphy Business.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/murphybusiness.com\/blog\/how-to-sell-a-company-for-the-first-time\/\" \/>\n<meta property=\"og:site_name\" content=\"Blog - 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