Business Selling Steps

business selling steps

Preparing Your Business for the Sale

Eventually, there comes the time when you want to sell your business. Questions you need to ask yourself?

• what price do I list?
• how do I determine the exact value of my business considering my assets, market and goodwill?
• what information do I need to provide and how is it presented?
• what steps do I take to properly present the business for sale?
• where do I list the business for sale without publicly announcing it to my employees and competition?
• how do I keep sensitive information confidential?
• how do I find and qualify buyers?
• do I need a lawyer, accountant, or other outside professional advisor?

Failing to properly manage the sale of your business can cost you. That is why you need a business advisor who can valuate your business, package your company for sale, screen potential buyers, and negotiate the price that works for you.

business selling steps

Determine Your Market Value (Price)

Do you know the true market value of your business? What would be your asking price if a buyer knocked on your door today?

Too often businesses use financial statements prepared for tax purposes as a starting point for determining value. Assets are written off rather than capitalized. Profits are minimized to reduce taxes. And tax allowances are taken to reduce asset or market value.

A professional valuation reflects the "Fair Market Value" of a business by recasting depreciated assets and cash flow in today's market. Placing the right value on your business is essential if you need to:

• sell your business at its fair market value
• provide a lender with Fair Market Value information to "pre-qualify" the buyer
• plan for a merger, acquisition or stock offering
• develop an estate or tax plan
• other: see valuation services

The Novars Group recommends that all sellers, prospective or active, complete a preliminary business valuation prior to listing their business for sale. The firm's methodology has been developed over the years by analyzing valuations from similar like-businesses.

And if you require a licensed valuation (for estate and other purposes), we have partnered with an independent, third party Valuation Team who has assisted business owners nationwide. A professional valuation can play a key role in helping you maximize the value of your business.

business selling steps

Finding and Qualifying Buyers

The economy has seen an increased number of business executives who are leaving the corporate ranks due to corporate down-sizing or restructuring. Many of these professionals are looking to buy viable, established businesses.

The economy is also seeing the consolidation of many services. Competitive firms are moving into new markets by merging their operations with established businesses.

We search the national market for buyers who have the capital, commitment and business knowledge to take your business to the next level.

How do we find them?

1. Through our growing network of local buyers who have been screened and pre-qualified.
2. Through the national database of the Business Broker Network that maintains a listing of buyers nationwide.
3. Through our internal network of broker affiliates from coast-to-coast who maintain their own buyer's network.
4. Through our internal buy/sell network of web sites.
5. By targeting specific companies or competitors who have an interest in your business.
6. By contacting equity companies that invest in business ownership with respective management teams.
7. By running ads when needed, in certain media
8. By other: as directed by you

Once we find and qualify a prospective buyer(s), we will present them the Confidential Business Profile (which includes your company information and valuation report). We screen each buyer to ensure their objectives meet your objectives. Our commitment is to present pre-qualified buyers who have the interest, commitment and the finances to close the deal.

The buyer will perform a due diligence on the business prior to closing. He or she will examine the books, check out the facilities and inventory, and review the records to confirm the representations made by the seller.

Two highly important objectives must be met during this due diligence:

1. Keep the process moving —
   you don't want delays. We keep prospecting for buyers to ensure that the deal goes through.
2. Become the point person —
   to address issues the buyer and seller may have during the review. We work with both parties to ensure the deal goes through.