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3 Reasons to Sell your Fort Lauderdale Business

Sell My Company

3 Reasons to Sell your Fort Lauderdale Business

Some Fort Lauderdale Entrepreneurs think to themselves, “when should I sell my Fort Lauderdale business?” Owners who contemplate selling their business do not necessarily do so due to financial difficulties or troubles, but rather because they are seeking opportunities. The Company Seller is a Fort Lauderdale Business Broker

Consider the following three factors when considering selling your business.

1. Fort Lauderdale Business value

The author, John Hammett, is a former company owner and an investment banker at Corporate Finance Associates. He worked for an entrepreneur in his fifties who sold one of his company’s two divisions at one point in his career. Hammett learned some important advice from the company owner while working on the transaction. This advice has stuck with him to this day.

When you have the opportunity to obtain liquidity for your Fort Lauderdale business, you should take full advantage of it, since running a business is risky and the longer you hold on to it and the larger it becomes, the greater the possibility of failure,” says Hammett. “Businesses have value but no liquidity until someone purchases them.

2. Tired of risk

Early on in the development of a company, owners tend to take more risks because they do not have as much equity to lose. Entrepreneurs who intend to expand their Fort Lauderdale businesses beyond their initial stages must be willing to take risks.

When a company is growing, its value increases and the owners become more cautious, fearing more damage than when the company was a smaller entity. Fort Lauderdale owners who are older do not have the luxury of time to spend years on damage control in order to correct poor strategies, therefore they do not take the risks that may result in the loss of their business.

Fort Lauderdale Entrepreneurs should prepare for the possibility of exiting their investments.  We make this decision not because the company is in a bad position, but rather because it is a wise business decision.

3. Time for change

According to Cal Lai, president and CEO of Recom Technologies (also a member of the Cerius advisory board), owners sell their companies for a wide variety of reasons.  Having the opportunity to achieve liquidity is a good reason for a business owner to decide it is time to sell the business, but it is not the only reason. CEO’s and founders may find themselves ready to retire after dedicating 15 to 20 years of time, energy, and resources to building a business. Another possibility is that an owner is seeking a change and is seeking new opportunities. This may be sufficient to motivate the owner.

The serial entrepreneur Lai says, “A good entrepreneur is always looking at the options that are available to them.”. There is always a risk associated with time, and the longer the business has been operational, the greater the risk.”.

Before you sell

A business owner constantly strives to reach financial goals, and this also applies to the sale of a business.  Important factors to consider when selling a business include:

  • Timing of the sale
  • Finding the right potential buyers
  • Getting your company ready to sell (audited financials, the right technology, a good executive team, etc.)

It is not always about obtaining the most favorable price when selling a company in Fort Lauderdale. As Murray Rudin, a managing director for Riordan, Lewis & Haden, a private equity firm advises, “If a firm is only selling a percentage of its business and will remain engaged in the company, other factors are just as important as the price.”. Factors such as quality, reputation, references, culture, chemistry, and trust are also important considerations.

When selling their business, the mindset of an owner should not be preoccupied with the last few dollars of the valuation, but rather focus on the quality of people they will be partnering with post-sale. According to Rudin, this is the most common mistake business owners make when they intend to roll over significant equity.  Once the deal is completed, you will need to work with these individuals.  Whatever the price they are offering you for a piece of your business, make sure that they are the right match for you and your company.

One final piece of advice: Plan your exit and be prepared to maximize your Fort Lauderdale company’s value at the appropriate time. Sell it on your terms rather than the market’s terms.

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