Selling your business fast and at a fair market price is the goal of many small business owners. After making the decision, I want to sell my business, there is nothing more frustrating than having the market respond or getting very low offers. Understanding the selling process will greatly help you to sell your business faster.
Establish Fair Market Price
This is the most important part of selling your business. Because the value of the business is more than just the equipment and furniture and fixtures, determining the fair market price requires detailed knowledge of the marketplace and what buyers are paying as well as an in-depth understanding of your business. To obtain a fair market price, you will need to contact a business broker or business valuation specialist who values businesses on a regular base.
Prepare a Confidential Memorandum
The Confidential Memorandum is a brief summary of your business that answers the key questions that buyers ask. This is only shared with a buyer after they have been pre-qualified and have signed a confidentiality agreement. This document drastically reduces the time wasted with unqualified and not serious buyers.
Many business brokers will only prepare this document for larger businesses because it is very time-consuming and detailed. As the owner of a smaller business, your business will sell faster with this document. This is the foundation of your marketing program and the basis by which the buyer will evaluate your business. It really is a must to sell fast.
Market your Business
Once the profile of the ideal buyer is determined, it's time to create a strategic marketing plan to attract that buyer. That could be through the internet, paper advertising, or direct marketing. With over 90% of the buyers coming from the internet, It is important to leverage the internet as a tool to sell your business fast.
Presenting the Business
Once a prospective buyer has been qualified and if required, the seller has approved the person to see the confidential memorandum, then it is time to present the information about the business. After the presentation, the next step is to qualify the buyer to see if they are serious about buying the business before they ever see or meet you, the seller. This saves you time by only meeting with pre-approved, pre-qualified buyers that know about the business details.
Conduct a Buyer Seller Meeting
Once a prospective buyer has been found that meets the criteria, can be financed, has a sufficient down payment, and is serious about pursuing your business, it is time for you to meet them. This gives you, the seller a chance to meet the buyer and discover their style, attitude, and personality. This gives the buyer a chance to ask more questions. After this meeting, if the buyer is serious either a letter of intent or purchase agreement is completed.
Negotiations
When selling a business, everything can be negotiated. Deals can be as creative as they need to be in order to meet the needs of both the buyer and the seller. Here are a few of the terms that can be negotiated: price, seller financing (down payment and interest), and time the seller stays with the business. Who pays the commission, and much more. A well-trained business broker can assist in structuring the deal so that everyone wins and this is one of the greatest advantages of using a business broker.
Need to Sell Your House Fast in Montreal?
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This article guides you on how to sell your house fast using various methods available.1) Using a RealtorSell your house When most people need to sell their house, this is the first option they consider.
First, the house needs to be in perfect shape.
Unless your house sticks out, you have little chance of selling it because there are too many perfect properties setting on the market.
Second, your mortgage balance must be low enough to allow you to sell the house at a discount and pay Realtor commissions and other fees.
There are lots of houses sitting on the market for months and they do not sell.
Unless you are able to wait, this option might not work for you.2) Selling your house yourselfThis is also known as the For Sale By Owner method.This means the ball is on your court - look for buyers, run any advertising campaigns, negotiate the price, show the house, do the paperwork, etcWhen you sell through a Realtor, they offer advice, but in this case it's all up to you to figure it out.Of course you will still pay closing costs even when you sell your house yourself.
