New Miracle Method Owner Shares Tips in Selling Your Business Fast
For a business owner looking to sell a business, learning as much about the sales process would probably be one of the first few steps that he might take in preparation for the sale. Consequently, researching about buyers’ experiences and expectations when buying a business such as the one he owns may not be one of the priorities of a business seller.
To shed light on what the experience is like to be on the other end of the spectrum of buying a business, Mike Rabinovich shares his story on buying the successful Miracle Method franchise in Portland, Oregon.
The business that Mike bought was previously owned by Dan Ness. One of Morgan & Westfield’s clients who were able to sell their business, Dan worked and wasted time and resources with two previous brokers, both of whom did not find him any qualified buyers and prolonged the sale of his business by one year each.
Read Dan Ness’ success story: You Need Persistence in Selling Your Business
The road to the sale of Dan’s business has been full of detours and roadblocks, but with persistence and Morgan & Westfield to guide him through the process, he was able to close a deal with Mike.
As with selling, buying a business is also a complex process
Unknown to business sellers, the process of buying a business can be just as stressful and time-consuming for a buyer. Not only are buyers looking for a business in a particular location, they are also searching for a specific type. Mike, for example, is seeking a manufacturing business for six to seven months until he found Miracle Method.
Mike recalled: “When I started looking for a business to buy, I initially started looking for manufacturing businesses because that's something that I was more comfortable with. But as I was looking, it's a fairly long and complex process looking for a business.”
Buyers also consider the business model when they look for a business to purchase. Some may prefer owning a franchise, and others may want to buy an independent business.
Even though Mike was unfamiliar with the industry of Miracle Method, he liked that it was well-established, well-known and had a solid product offering. At first, however, Mike was not open to the idea of owning a franchise because he thought it would limit his freedom on the way he wanted to run his business.
Mike explained: “Initially I was a little apprehensive about the franchise. I did not know much about them, but my perception was that a franchise would dictate a lot of what I do and how I do it. And once I started investigating, I actually like the franchise model. And now, I like it even more that I have been a part of it.”
A buyer is as eager to close as any seller. Both the seller and the buyer want to close the sale as soon as possible. The buyer, however, could take as much time as needed during due diligence.
A buyer will delve into as much data and records on the business. Expect buyers to look closely at your financials or books.
A buyer expects the transition to take longer. Sellers often provide 30 to 60 days as transition period to train the buyer on everything he needs to know to run the business effectively.
A buyer will look at opportunities for growth. A buyer wants to buy a business that is not only profitable but also has the potential to grow.