Placing a business for sale is generally the start of an owner's single largest financial transaction. There are critical questions that must be answered if the business sale is to be successful.
The criteria for success are many. Most important is the reason for selling. Every step of the business sale process should be geared toward achieving a specific financial goal. Other personal or business interests are typical goals a business buyer will appreciate.
A second important criteria is the marketing method. Can you place the business for sale and still maintain confidentiality? Are you knowledgeable in current tax and legal issues that will arise? Do you have the sales contacts to find and match suitable business buyers? Do you have the time to qualify a large group of such buyers to find the one that best suits your business opportunity?
If any of these creates a difficulty, you should consider the services of a professional business broker. Murphy Business and Financial is the nation's premier business intermediary with offices throughout the nations and dozens of agents here in the Dallas / Fort Worth Texas metroplex. The intricate details of a business sale transaction frequently cause them to fail. The PDF document details the sad statistics on business sale success rates. However, the reasons for failure are known and explained in this free paper.
The 7 Critical Points of Business Sale Success:
1) Valuating at a Realistic Price - This is easily the most important single factor in business sales. It's much more complex than the valuation of goods and services typically sold and best done professionally.
2) Knowledge of the Businesses for sale market - This needs to be current. Industry myths about historical "multiples" abound and are only mis-leading.
3) Confidentiality - Nothing can erode the current value of an operating business more than "leaking" it may be for sale. This is a very important reason to work through a business broker.
4) Expertise in attracting Buyers - A business broker typically has many businesses for sale. Each one attracts several buyers; however, only one can complete each business opportunity. Having this pool of buyers along with the knowledge of what attracts them, gives the brokerage great leverage in developing a successful marketing plan.
5) Lender Financing - Surveys have shown that businesses for sale that have arranged for acquisition financing before locating a potential buyer sell faster and for amounts closer to their listing price.
6) Red Tape - Many deals die in due diligence because attention to special financing, lease, licensing or similar matters were not resolved or at least disclosed early on. When a buyer is interested in your business, the last thing you want to have happen is for then to discover an issue.
7) Emotional Negotiations - Since a business sales is such a large transaction for both the buyer and seller, emotions can quickly rule and terminate what would otherwise become a successful business sale. A business broker plays a key role in controlling the negotiations to prevent a problem here in the last steps of the process.
Our free paper discusses the process at greater length and includes many insights from the experience of Murphy Business and Financial. We would be happy to answer any additional questions about buying or selling business opportunities in the strictest of confidence.
Recently closed Texas Businesses for Sale:
SOLD: Popular Texas Bar and Dallas weekend Hot Spot
SOLD: Profitable Auto Repair Business in Dallas Texas area
SOLD: Central Texas Japanese style restaurant for sale - upside!
SOLD: Solid Commercial Electrical Contractor looking for sale or merger
SOLD: Thriving DFW Electrical Contractor for sale
SOLD: Addison Texas area Cafe for sale - Absentee owned
SOLD: Multi-location Tax Practices for Sale in Houston area
SOLD: Established Concrete Contractor for sale
SOLD: Upscale Texas Bridal and Formal Clothing Store
SOLD: Independent Tire Business for Sale in DFW Texas area
SOLD: College Campus Convenience Store for sale
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