Steps to SellingBusiness Business Information For Sellers Sell Sell a Business Selling Selling a business Small Business
Posted by Jennifer Smith on
Have you ever wondered HOW people sell their business when they’re done running it? You may know intuitively that it’s not like selling a car or a piece of real estate, but most people don’t know where to begin when they’re ready to sell their business. At Murphy Business of Cape, we guide clients through the complicated process so that they get to the closing table successfully.
Below is the process that has produced success for clients for over a decade:
Step 1: Valuation. Having the business valued by a business broker (someone who will actually have to stand behind their assessment) is vital. This is often not your CPA or financial advisor, who both will have extremely important roles in the transaction, just not at this stage.
Step 2: Engage a business broker to sell your business. Whether you are selling to someone you know or you have yet to meet the future buyer of your business, a business broker will be your guide and coordinate all sale related activities.
Step 3: Prepare for sale. Your business broker will prepare all of the public marketing materials as well as the detailed information potential buyers receive after signing a non-disclosure agreement. They will also give you tips for making sure your business keeps preforming well during the engagement period.
Step 4: Marketing for buyers. You want to market blindly (confidentially) and nationally to make sure you are capturing the widest possible audience. We are seeing more and more buyers looking to relocate or simply preferring the remote ownership option.
Step 5: Negotiating offers. A business has a lot of moving parts and deal points to consider. You want to select the best offer that has the highest likelihood of getting to the closing table. Your business broker will be key to sourcing the best buyers who won’t waste your time and will guide you through the optimal deal structure for your goals.
Step 6: Due diligence. Once you’re under contract with a buyer, they will want to validate what they are buying. This usually involves a virtual deal room, accountants, sometimes attorneys, and lots of logistics.
Step 7: Closing. The day you’ve been waiting for where the ownership of your company is finally transferred and you are confident that your legacy will be preserved for years to come!
Our mission is to be an ethical business brokerage that sets buyers, sellers, and their small businesses up for success in the next chapter of their lives. Our ideal clients are businesses who have between $1 million and $50 million in revenue*, a strong leadership team in place, are profitable, have clean financials, and are in a stable or growing industry. We work best with people who care about their employees, clients, and preserving their legacy, trust us and our proven processes, are collaborative and kind, motivated to sell, and value open, down-to-earth communication instead of a slick pitch from an investment banker.
If this sounds like you and your business AND you’re looking at selling now or within the next 5 years, please reach out to us to start the conversation today. We are exceedingly confidential and promise to shoot you straight. We look forward to hearing from you!
*We take smaller listings on a case-by-case basis. If your revenue is under $1M, please reach out for a free consultation.
Want to find out how sellable your business is currently? Visit MurphyScore.com to take our free sellability assessment.