Have you ever wondered HOW people sell their business when that time arrives? 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, 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 professional who is trained and certified in business valuations 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 performing 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!
If 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!