Dayton, Ohio Business Brokers | M&A

Tips for Business Sellers

Our business brokers at the Dayton, Ohio, office of Morgan & Westfield provide a variety of services to assist business owners in selling their businesses. These services are designed to facilitate the successful completion of each step in the process of selling a business. But in addition to addressing the technical aspects of business sales, we also provide services that are more support-based. Our business brokers will guide you through the sales process and answer any questions that you may have along the way. Our support services also focus on providing advice and tips that will make the sale of your business easier for you. Some of the tips that our business brokers provide include:

• Prepare Your Business to be Sold: Before you begin the process of selling your business, make sure that it is ready to be sold. This means repairing equipment, removing items that do not work, removing personal property that is unrelated to the sale and generally cleaning everything so that it looks its best. From an aesthetics standpoint, selling a business is like selling a house — a buyer wants to see everything looking well taken care of and ready to use. Failure to present your business in its best light will give buyers the impression that your business is not being taken care of properly. Make sure that your property appears well maintained.
• Prepare Yourself for the Sale: Selling the business that you have dedicated yourself to building can be stressful and intimidating. By preparing yourself for this ahead of time, you will be more committed to the sales process and will be more likely to have a successful sale.
• Have Your Information Prepared: Any buyer who considers purchasing your company will want to see information that provides insight into your company’s history. This information should be prepared before beginning the sales process. You should also consider having these documents prepared by a professional. By having this work done ahead of time and by a professional, you guarantee that all documentation will be accurate and ready when a buyer asks for it. Doing this will also make the sales process easier for you because it will be one less thing that you need to worry about doing later.
• Be Aware of Your Leases: Most businesses rent or lease some type of property or equipment. You must make sure that buyers are aware of what you own and what you are leasing. This will prevent a buyer from thinking that they are purchasing something that is actually leased. You should also make an effort to ensure that your leases can be assumed by your buyer or at least extended for a reasonable price. Failure to address this issue can result in complications later in the process.
• Be Accommodating to Buyers: When dealing with any potential buyers, make an effort to be as friendly and accommodating as possible. This will allow buyers to feel more comfortable and build trust. Having a good rapport with buyers will make negotiations less contentious and the entire process easier.
• Business as Usual: Buyers want to purchase a business that they can see is running to its fullest potential. This is essential in order to maximize the price that you can command for the sale. Continuing to run your business as you normally would also prevent competitors from gaining market share. Continuing to operate your business normally is an important aspect of selling your business.
• Understand the Negotiation Process: Business owners are often surprised by the negotiation process. In negotiations, both sides are trying to get the best deal possible. This means that buyers will usually make a very low initial offer. All too often, business owners take this offer as a personal insult, and negotiations break down. To negotiate a deal successfully, you must remember that the only deal that matters is the deal that is negotiated and agreed to by both sides. Every offer prior to that point is nothing more than an invitation to keep negotiating. Remember, the fact that an offer was made means that they are interested in purchasing your company, and that remains true as long as they are engaged in negotiations. So, it is important that you remain patient and objective in order to reach a mutually agreeable deal.
• Understand Business Valuations: When our business brokers or anyone else tells you that your company is worth a certain value, it is important that you remember that business valuations are not an exact science. At the end of the day, only the market and what a capable buyer is willing to spend can determine your company’s true value. You should keep this in mind throughout the sales process. Failure to maintain some level of flexibility in the way you view your company’s value will make your business far more difficult to sell.
• Confidentiality Is Key: When you are selling your business, it is vital that your confidentiality is protected. If there are information leaks and your customers, suppliers, competitors or even employees learn about the sale too early in the process, your company’s value could be in jeopardy. To prevent these leaks from happening, you should sell your company as discreetly as possible and require anyone with knowledge of the sale to sign a non-disclosure agreement.
• Do Not Try to Hide Anything: Sellers are often tempted to hide or omit information that presents their company unfavorably; this is a bad idea. Buyers will do extensive research before they purchase your company. This almost always results in information that was omitted or hidden being uncovered. The fact is, buyers, know that no business is perfect; by disclosing unfavorable information upfront, buyers are usually forgiving. But if you attempt to hide it and they learn about it through their own due diligence process, then they are considerably less understanding. It is always best to be honest from the beginning.
• Sell Through a Professional Business Broker: Business owners often want to sell their business on their own. This is almost always a mistake. Private business sales often end in poorly structured deals that lead to payment problems, default, and legal battles. Not to mention the fact that businesses that are sold privately almost always sell considerably below their market value. When selling your business privately, you are taking the risk that the sale may not be successful and you may be unable to maximize your profits. After all of the work that you have done to build your company, there is no reason to take this risk. Selling your business through a professional business broker is always the best option.

Contact the Dayton, Ohio, Office of Morgan & Westfield

If you are selling a business in or around the area of Southwestern Ohio’s Montgomery County, our business brokers at the Dayton, Ohio, office of Morgan & Westfield are here to help. Our services will ensure that each step in the process of selling your business is completed successfully. We will assist you with every aspect of your company’s sale, and our business brokers will be a source of constant support as you go through this complex process.

To learn more about our specific services and how they can be used to facilitate the successful sale of your business, contact the Dayton, Ohio, office of Morgan & Westfield today to schedule a free initial consultation. During this initial meeting, we will explain all of our services, answer your questions and explain what you can expect going forward in the sales process. This meeting is completely free, it comes with no obligations and all of the information that is discussed is considered completely confidential. So you have absolutely nothing to lose by discussing your business sale with one of our business brokers. To schedule your free consultation, contact the Dayton, Ohio, office of Morgan & Westfield today.