To sell your Fort Lauderdale business successfully, you must follow specific steps. You can always contact a Fort Lauderdale Business Broker.
Deciding to sell your business in Fort Lauderdale requires you to take several actions and make several decisions. How can you best locate a buyer who is aware of the value of what you have built? No matter whether you have achieved great success in your business, you are moving on to another venture, you are retiring, or other life circumstances have forced you to sell, selling your business takes significant planning, diligence, and patience.
Following are a few guidelines that you should follow when beginning this exciting process, as well as some frequently asked questions business owners have about the big sale.
1. Establish the value of your Fort Lauderdale business.
Identifying exactly how much money your business in Fort Lauderdale is worth is the first and most crucial step. You will have to consider several factors, including revenue, expenses, debts, and other responsibilities your business has acquired over the years. It is also essential to consider the seller’s motivation: If the seller is a competitor hoping to increase its market share, it may be willing to pay a higher price.
You can determine the value of your business in many ways, including the following:
A method for calculating the difference between assets and liabilities that are based on assets
Using a market method, which involves examining competitors and other sales to determine a rough estimate
In this method, several factors are considered, including income statements, forecasting, growth factors, and cost structure.
Depending on your business structure and goals, you will need to determine the best method for you. A legal and financial professional can be of assistance in this regard.
2. Seek legal and financial expertise.
Irrespective of the reason for the sale, it is imperative to have Fort Lauderdale professionals assist with the financial, legal, and tax aspects of the transaction. Having the appropriate resources is essential due to the fact that many details will be unknown to you. As well as assisting you in making the right decisions for your Fort Lauderdale business, these experts can also provide you with valuable advice.
Third-party professionals are important as they provide a neutral perspective. These experts are not emotionally attached to your business, so their approach will result in rational decision-making.
3. List your company with a professional Fort Lauderdale business broker.
By using a Fort Lauderdale business broker, you can increase your business’s visibility on the market and increase your chances of finding the right buyer. As a result of their extensive networks, they can connect you with potential buyers that you were not able to locate on your own. In addition to advising you on how to set a realistic asking price, a broker can also market your business to potential buyers and contact them on your behalf.
4. Set a realistic asking price.
It may seem tempting to set an extremely high price if your business is doing well. In fact, Fort Lauderdale buyers will take into account a wide range of factors when considering a purchase. It is important to consider how all these aspects will impact your decision and how you would approach the business if you were the buyer. Profits, customer relationships, reputation, market share, as well as the personal investment of time the new owner will need to make the transition successful should be considered. Furthermore, there are practical factors to consider, such as whether there is a debt to be repaid or tangible assets that have value or can be sold. It is important to price the property appropriately.
5. Organize your paperwork.
The preparation for the sale of a Fort Lauderdale business begins long before you put up a “for sale” sign. Interested parties will seek proof of a successful track record, including:
At least three years’ worth of tax records
Financial information, both actual and projected
A strong client base, as evidenced by existing agreements
Report on cash flow
6. You should separate business and personal expenses.
It is time to separate your personal and business expenses if they are still commingled. The practice of charging personal expenses to your company is not uncommon. However, such a practice can have significant consequences down the road, and it presents a distorted picture of your true finances to a potential buyer. Pay yourself on a regular basis, similar to a salary, according to your business needs. You should speak with the professionals you hired to assist with your sale if you are not sure how to set this up.
7. Request written offers.
Having a conversation is cheap. To make accurate and proper comparisons, it is imperative to have everything in writing as soon as offers begin to arrive. In addition to the price, there are many other factors that should be considered, so it will be a good idea to keep records of each offer in order to ultimately determine which is best for you.
8. Enhance your curb appeal.
When it comes to selling your business in Fort Lauderdale, many people overlook the outward appearance of the company.
In addition to brick-and-mortar businesses, online businesses must also pay attention to this issue. In the event that you are selling a physical location, make sure it is clean and tidy, the equipment is in good working order, and any necessary repairs or improvements have been made to the landscaping or signage. If you’re planning to sell a digital business, make sure that your online reputation and reviews are excellent. To enhance your reputation online and better present yourself to buyers, you may want to consider hiring a marketing firm.
9. Ensure that all loose ends are tied.
The Fort Lauderdale business should be handed over with all payments, late fees, defaults, and promises honored. You should fulfill your promise if, for example, you promised a member of your team shares in the company, even if you are planning to sell. Similarly, you will have to determine how to handle incoming payments: you may have outstanding invoices that need to be paid. If there are any loose ends, they could lead to difficulties when the deal is completed, so ensure they are tucked away, even the small ones.
10. Remain quiet until the sale has been completed.
If you operate a Fort Lauderdale business where an impending sale may send your clients or customers into a panic, it is advisable to keep the sale quiet until you have identified a buyer and negotiated the terms of the sale. You will also need to determine how you will transition your customers to the new owner. After informing your clients, you may want to make a formal announcement by releasing a press release. Ensure that existing clients are notified first.
In conclusion, selling your business is a lengthy process. You should hire the right professionals and document the entire process.
FAQs regarding the sale of a business
The following are some of the most common questions regarding the sale of a Fort Lauderdale business.
How should a business be sold?
Even though there is no right or wrong way to sell a Fort Lauderdale business, there are many tools available to you that can facilitate the process. One of the best ways to locate buyers is through the help of a broker and other professionals who have experience finding buyers and a well-established network they can utilize. The “best” way to sell a business is one that leaves all parties as satisfied as possible. In the end, both you and the buyer will need to come to an agreement that is comfortable for both of you.
How should a business be sold?
Depending on personal circumstances and market conditions, the answer may vary, but if you wish to sell, you should do so when you are at the top of your game. A successful and profitable Fort Lauderdale business with a good reputation will be much more appealing to potential buyers. You may want to consider selling your home if you have enjoyed a particularly prosperous year.
What is the average time it takes to sell a business?
From preparing for the sale to signing the contract, expect the entire selling process to take several months. Generally, it takes between six and ten months.