sell your business

Client Expectations When Selling a Business

The process of selling a business is completely different from the majority of business transactions. It is a lengthy process that involves a myriad of factors that must be properly analyzed and addressed if the sale of the business is going to be successful. Obviously, not every client will be aware of this before beginning a business sale transaction, and it will up to the broker to manage their client’s expectations and help them understand the complexity and logistics of selling a business.

The first step in the process is the valuation of the business that is being sold. Assets and long-term profitability must be assessed in order to determine the most precise price at which to value the business. This process alone will take weeks, if not months, in order for their accountants to study the books and determine the overall current value of the business. You must help the client understand that this is not an overnight task, and that it must be accomplished accurately down to the most minute asset.

Next, a client must be aware that they more than likely will have to help finance the sale in order for the deal to be executed. More than 80% of business sales include seller financing to some extent, so this is an aspect of selling a business that, more than likely, your client will not be able to avoid. They need to be made aware that, while they will see profit from the sale, they will probably not gain the full net value of their business. This way, you can explain to your client that negotiation will yield possibilities for he or she to walk away with as close to that number as possible.

Finally, the client needs to be grounded regarding his expectations concerning potential buyers. It’s not going to necessarily result in tense negotiations, but clients should know that it is unlikely that they will find the perfect buyer in the first person with which they consider striking a deal. It is going to take time and patience in order to find the correct buyer in the person who will come closest to your client’s number.

If you’re a business owner potentially looking to sell your business, we hope that this post has been helpful in informing you of the potential difficulties associated with selling a business. If you’re ready to take those difficulties on, contact Broker Matcher today!

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