Sell Your Business With the Business Brokers of Morgan & Westfield, Oceanside, California
When you sell your business through our business brokers at Morgan & Westfield, we will handle many of the more technical aspects of the sale for you. We will also guide you through many of the details that you must personally handle as the business owner. But you might be wondering, “Outside of the things that I have to do as a seller, what else can I do to ensure that my business is sold successfully?” To make the sale of your business easier and more likely to succeed, here’s what you can do:
- Prepare a List of Items Involved in the Sale: All too often a seller will tell the buyer that “everything is for sale.” This is often untrue, and it can lead to confusion later in the process. For example, if there is personal property, rented equipment or the building and property are leased, then “everything” is not really for sale. You will be removing your personal property, and you cannot sell rented equipment or leased property because you do not own it. These types of innocent misrepresentations can lead to problems later in the process. Making a list of everything that you own and are selling that can be presented to a buyer will prevent this confusion.
- Think About the Things that You Would Want to Know as a Buyer: For repayment to be possible, your buyer will need to run the business with some success. This means that as a seller you have an interest in the buyer’s success. So, if you have any tricks of the trade, tips or advice for the future owner, then this is a good time to prepare this information.
- Check Your Leases: Most businesses rent or lease some property or equipment. While you cannot sell these items, you can consult the owner of these items to discuss transferring the agreements to the future business owner. Having the ability to transfer property to a buyer in this way can be a selling point for buyers.
- Maintain Realistic Expectations: As a seller, the sales process can be stressful. It is important that you maintain perspective throughout the process and do not get frustrated that the sale is taking too long or that the offers you are receiving are too low. Selling your business is absolutely a process and you must remember that until the company is sold, nothing is permanent.
- Protect Your Confidentiality: It is imperative that your business is sold discreetly. This means that just like you cannot put a sign out advertising the sale, you also cannot tell people about it. This includes friends, neighbors, customers, suppliers and even employees. If you must tell someone, then you should first ask them to sign a non-disclosure agreement to protect yourself. Failure to do this can result in information leaks that can be detrimental to the sale.
- Run Your Business Normally: Buyers want to see that your business is thriving. They want to see that you have a customer base, good suppliers, and good employees. Buyers are looking for a business that will be profitable; by maintaining these things, you are proving that your company represents an opportunity for success for potential buyers.
Preparing for Your Business’s Sale
As a seller, there are also many things that you can do before the sales process even begins. By completing these pre-sale tasks, you are both making the sales process easier and increasing the likelihood that your company will be sold successfully. Some of the pre-sale tasks that we recommend include:
- Have your company’s financial records professionally prepared.
- Perform maintenance on your property to ensure that it is sales-ready.
- Remove items that are unrelated to the sale.
- Consult with a tax professional to better understand your obligations in relation to the sale.
- Prepare yourself mentally for the sale so that you will be fully committed to the process.
- Research your local business market to understand how similar companies are selling locally.
- Research your local market to understand if this is the best time to sell.
- Begin thinking about an asking price for your business.
- Make sure that your schedule will be flexible enough to meet with buyers.
- Prepare yourself to train a future buyer.
- Prepare yourself to sign a non-compete agreement (this is a standard in business sales).
- Have a non-disclosure agreement drafted and ask anyone who will have knowledge of the sale to sign the contract.
- Meet with a professional business broker to plan the sale.
Business Brokers of San Diego County
At the Oceanside, California, office of Morgan & Westfield, our business brokers provide advice and business brokerage services to local business owners in and around Southern California’s beautiful San Diego County. Our business brokers have more than 100 years of combined experience in facilitating business sales in this area. And we average more than 100 successful business sales annually. Our business brokers have been particularly successful in the communities of:
Oceanside, Escondido, Carlsbad, San Clemente, Dana Point, Laguna Niguel, Deluz, Fallbrook, Bonsall, Pala, Rainbow, Temecula, Murrieta, Valley Center, Vista, Pauma Valley, San Marcos, Ramona, Poway, Rancho Santa Fe, Encinitas, Solana Beach, Lakeside, El Cajon, Chula Vista and San Diego.
Our business brokers have facilitated successful sales for companies of all sizes and in all industries throughout these communities. At Morgan & Westfield, we have established a reputation for success and quality customer service. To learn more about how we can put these skills to work for you, contact the Oceanside, California, office of Morgan & Westfield today.