How to sell your business Video
Analyze & Prepare The Business:
The first step is a no-obligation consultation to better understand your needs and goals while learning about us and the process. We know what buyers want to see in a business, and we can work with you to get your business in a position to be sold for the best price and in the shortest time frame. Now is the time to evaluate your business in its entirety and determine if it's a business worth selling. In other words, given some work, does it have the potential to become a good purchase prospect? Or would it be best to liquidate it? You'll need to consider the value of your business beyond its physical components, as you've added many tangible and intangible elements over the years and created a whole business that is much greater than its parts. Depending on the current condition of your business and your willingness to spend the time and effort to improve it, you have choices to consider: Ideally, you've found that your business is in great shape and ready for sale, and you may proceed to set an asking price and to list it confident in its scalability. You may find that your business needs improvement before it can be placed on the market and receive a competitive asking price, but decide to sell it as is. You choose this knowing that your selling price might be lower than if you were to make improvements. Or, you may follow through with the plan of action you've created, which will delay selling your business in exchange for more potential buyers and the likelihood of a higher sales price. We can help outline a long-term strategy and help prepare the business for a sale at a later time. Lastly, you may decide that the condition of your business makes it uncompetitive in the sales market and not worth the effort to improve, opting to liquidate your assets instead. Whichever route you decide to take, you'll be assured that you've made the right exit-strategy decision once you've examined your business and explored your options. When you're ready, REMAX Commercial gives you the option to list your business as an established business or as an asset sale.
We provide you with a broker's opinion of value (BOV). You and your Remax advisor will work together to establish your company's asking price and terms. The BOV provides a business seller with expectations on what the business may sell for, given the intended pool of initial buyers, at that given time. Whether the business is profitable or losing money, we can determine the value for the company. To assess your business accurately, you'll need to prepare your financial statements, ideally for the past three to five years. Hopefully, you've been keeping your business records in order. If not, roll up your sleeves, gather your papers, and prepare to get organized well before your listing. You'll be glad you did, as this will make the selling process much easier. Getting your financial records and reviewing them for accuracy will help you determine a fair asking price and help you identify certain pitfalls, and develop improvement strategies. Why not improve your company's value now while watching future sales? Once your records are in order, you can determine and enhance your earnings multiples. Price-to-earnings ratios depend on numerous factors, and adequate preparation will afford you the time to act to improve the value of your business.
You and Remax Advisors enter a contractual agreement, giving Remax Advisors the exclusive right to market the business for sale as your representative for a specific period and under specific terms and conditions.
Our team will create a compelling CONFIDENTIAL business profile, CONFIDENTIAL Business review, and additional collateral designed to stimulate buyers' interest. Our blind marketing campaign is to reach potential buyers locally and globally. Our aggressive marketing includes multiple online platforms, print, email, social media, phone, and our database of pre-approved buyers without initially identifying your business. A good business-for-sale listing maintains a delicate balance between providing enough information and not giving away too much. We want to make your business sounds appealing to potential buyers, while at the same time, we don't want to not reveal too much to the point where they don't feel the need to contact us for more information or where we put your confidentiality at risk.
Respond & Screen Buyers:
Each prospective client is required to sign a Confidentiality Agreement (NDA). They must also qualify financially/strategically. Our buyer interview process is extensive and proven to engage serious buyers in order to determine if the business is a good fit. We will take the pool and narrow it down to those who appear serious, have the capacity to perform, and, ultimately the prospective buyers who may be the best candidates. We realize the importance of not identifying the business until all of our buyer criteria have been completed.
During the entire process, you are responsible for maintaining or improving the company's value by tending to daily operations. You are also responsible for providing current and/or additional information requested by buyers.
Manage Buyers and Evaluate Offers:
Your Remax Advisor will confidentially schedule all buyer/seller meetings at your convenience, prepare offers/LOI, and conducts negotiations on your behalf. Our experience will help you evaluate the pros and cons of each offer. Our job is to be the buffer between buyers and sellers to temper emotions, manage the negotiation process, and secure the high ground in negotiations on your behalf.
Due Diligence Management:
Once an offer is accepted and finalized, we will coordinate the due diligence process and ensure all contingency satisfaction is met promptly. This includes working with accountants, attorneys, and lenders to keep the process focused and efficient. A due diligence checklist is essential when starting your investigation and verifying the business for sale. This will include financial statements, tax returns, P&Ls, inventory reports, lists of assets being sold, accounts receivable reports, accounts payable reports, bank statements, customer lists, employee lists and duties, vendor lists, copies of all licenses required to operate the business, copy of the lease, copies of any contracts and leases.