How to sell a Business Fast and for Maximum Profit

If you decide to sell your business, you should consider marketing it directly because you will save the commission you would have paid to a business broker, shorten the length of time it will be on the market, and simplify the process at the same time.

Also, many owners who list their businesses with brokers are simply testing the waters, want to learn more about how the process works, and hope to find out how much they could get for their business.

Want to know how to sell a business? Here are some steps you will need to take:

1. Determine what your business is actually worth. Your accountant will tell you that several methods are used for doing this, and the one you choose should be based on the kind of business you have and the usual way for valuing businesses in your particular industry.

2. Once you know the value of your business, you can proceed to advertise it in the media that seem best suited to it, including an industry magazine, your local newspaper, or the Internet, and prospective buyers will know that you are serious about wanting to sell a business.

3. Consult with your attorney in regard to the legal matters related to the sale, and the fee you will be charged for this service can be determined for the entire project, or on an hourly basis.

4. Remember that potential buyers will have many questions that you must be prepared to answer. They may want to know if your equipment is included in the selling price, your company’s sales history, the staff’s experience, and many other details. The more prepared you are to provide such information when you receive inquiries, the less likely it is that prospective buyers will lose interest as they wait for you to respond to them.

5. During negotiations, an interested buyer may make an offer that is less than your anticipated sales price, and if this happens, try to make a counter offer that is acceptable to both of you. Authorities in commercial real estate also recommend verifying the buyer’s ability to pay before you proceed any further.

6. Have an escrow company handle the transaction, but after the funds have been set aside, don’t let this derail your efforts to sell a business. Far too often, this is the reason that a non-brokered deal is never completed.

Once you have a satisfactory offer and decide to sell a business, ownership of the business will be transferred to the buyer. (At this point, you might also want to accept the payment method that will be most beneficial to you in regard to the tax consequences.)

Ask your attorney to draw up your sales contract after you have settled the details, and ensure that you business interests are being protected. Then you will be ready to close the deal.