Sell A Business in Daytona

Selling a Business in Daytona

The selling of a business is a very complex process. It involves many aspects that most successfully business people are not exposed to in the day to day operation of a company. Business Owners in general do not have the time or knowledge to recognize and understand the complexities of selling their own business. Most businesses do not have the personnel capable of handling the sale of a business. Selling a business involves much more than placing an ad.  You should rely on experts trained in the sale of businesses. Someone who is seasoned and familiar with the nuances of selling a business will prove to be an invaluable asset.

How long does it take to sell a business?  The current average in Florida is about 9 months. Because of the confidential nature of a business sale the advertising and networking of a sale takes longer than a traditional real estate transaction. There are exceptions to the rule of thumb. Our selling process is such that we educate the sellers on the value of their business and thereby set a realistic price of sale. Subsequently we average a far quicker rate than most brokerages. Some businesses have sold in as little as 30 days. A good business broker is talking to buyers every day. We work to find “good deals for good people”. By active networking and advertising  the next business may be just the one for a buyer who has been looking for months.

What kind of financing in available? There are three ways to buy a business: Cash (friends, family, personal), SBA Lending, or Owner Financing.  Banks (particularly in the present market) do not “cash flow lend”. Sellers and buyers alike need to understand this and be cognizant of the lending market and the various vehicles available to acquire a business. Often times a combination of two or all three of the aforementioned means are used to make a deal go through.  Home equity lines and owner financing are by far the most common means at present.

How do you advertise a business for sale? We advertise on over 15 different websites, execute branding campaigns in magazines, billboards, and other print vehicles. Radio shows and ads are executed in all major MSA’s in Florida. In addition our size and scale drives the other professionals in our industry to our listings and sites.  By listing more businesses than any other firm in the State of Florida we drive more buyers an buyers brokers to our listings creating competition for the sellers business and higher activity.

Factors, such as:
“ Maintaining confidentiality.
“ Receiving the highest value for your business.
“ Knowing how to project the company’s future.
“ Maximizing its potential.
“ Applying alternate deal structuring must be considered when selling.
This document presents 12 of the most vital concerns that will have a direct effect on the selling of your business. The omission or even wrong interpretation of just one can greatly affect the value of the business or future success of the potential sale. Some of these must be implemented immediately, such as maintaining confidentiality of the future sale, while others can be addressed during the selling process. You will find these 12 suggestions highly informative.

These are guidelines you will need to know when selling your business to achieve a faster transaction and the best possible price.

  1. Lack of deal structure expertise
    When the seller has limited knowledge about the available alternatives for structuring the deal, he is at a definite disadvantage! And probably a costly one. Items such as leverage buy-outs, leases, royalties, earn-outs, consulting agreements, non-compete contracts can add immeasurable value and security to both buyer and seller alike.
  2. Failure to adjust the net owner benefit
    If you are to determine a proper value, the balance sheet and income statements must be recast. Items such as owner’s salary, depreciation, interest and fringe benefits may be added or subtracted depending on the circumstances. The adjusted income statement will reflect the actual owner benefit in order to help determine the market value.
  3. Failure to maintain confidentiality
    Confidentiality is vital to the selling of a business. If employees know that you are selling and changes are coming, they may seek other opportunities. Competitors may use this information as a selling tool. Vendors may not continue to extend favorable terms. Profitability and market value may be reduced.
  4. Failure to secure qualified buyers
    Knowing how to qualify a buyer is critical. We pre-qualifie each buyer to avoid a negotiation that is doomed to fail. This saves you time and money. It can eliminate hundreds of wasted hours and misdirected efforts.
  5. Failure to continue to run your business
    It is important to maintain your business at peak operating capacity. The performance and productivity of your business is what you are really selling. The time taken from your business to sell it will have a toll on the business and as a direct result lower its market value.
  6. Failure to properly adjust for economic conditions and owner’s ability
    Generally speaking, the higher the skill level required to operate the business, the more difficult it will be to sell it. The value tends to increase when the owner can be replaced easily. The value also may increase when an industry is in a growth stage. For many industries there are specific valuation methods that are highly subject to the owner’s duties in the company as well as outside economic conditions.
  7. Failure to provide credible information
    A potential buyer will want information about your customer base, competition, financial history and industry characteristics, such as size, growth potential and areas of opportunity. This information must be provided in a salable format and in a way to ensure your confidentiality.
  8. Poor negotiating techniques
    In many deals, poor negotiating techniques can cost the seller considerably in terms of selling price, terms and other opportunities. Many times a deal will fail to close because of poor negotiation or communication between parties.
  9. Failure to place the proper value on your business
    A business has value to a buyer because of its anticipated earnings from its established resources and a demonstrated successful track record. Proper evaluation is crucial, enhancing the chances of selling your business.
  10. Failure to consider alternative investments
    All buyers have alternative investment options. To make your business attractive, you must show a return on investment greater than stocks, bonds, real estate or other similar business opportunities. You should be prepared to offer seller financing.
  11. Failure to prepare for proper due diligence
    Due diligence issues are very important to the selling process. These issues can have a major impact on the closing of a business sale. It is imperative to be prepared and organized. You must be able to defend and substantiate representations made during the selling process.
  12. Failure to seek professional assistance and consultation
    There are legal, financial. marketing and other vital considerations that must be addressed in the selling process. Many decisions in the selling process should not be made without the advice of the right professionals. A wrong decision could lead to a fatal mistake.

These are just 12 areas of concern. There are many more just as important, depending on your particular situation.

Some of these are:

      • How to sell when partners disagree.
      • How to sell when a company is marginal or close to bankruptcy.
      • What to do if the buyer wants you to continue managing the company.
      • How to compile the necessary paperwork to finalize the sale.
      • You simply cannot afford to sell your business without the necessary skills and selling expertise. You run the risk of not getting the full value for your business. Worst yet, you may turn off legitimate buyers who may have purchased had your business been properly packaged and represented.
      • Almost all business owners who sell on their own do not receive the full value for their businesses!

We have one objective — to get you the most for your business.
We believe in results. Now you must take the next step!

By now we hope you are aware of the potential economic gain and the possibility of fatal errors when selling your business. Our main objective is to ensure that every client receives the maximum value for his or her business. That is our purpose.
We have  sold hundreds of businesses, some just like yours. Unlike other brokerages, you get 100% directed expertise in selling your type of business. No distractions!

We specialize in virtually every type of business in most market segments. Chances are that we have an expert on board, experienced in the sale of your type of business. This works in your favor because we are familiar with the challenges associated with the marketing of your business.

 10 Step Business Selling Strategy

We believe that you come to us to achieve the highest possible price with the least amount of time taken from your business. We know that your time is more valuable when invested in running your business. In order to achieve the best price, your business must continue to grow. After all, that will be the basis for a buyer to want to purchase your business, rather than consider any other business or investment option.
Our philosophy has created a multiple step strategy that culminates with the sale of your business. It is a proven method for selling any business.

    • Step 1. Comprehensive business analysis.
      As your business advisor, we analyze your operation, finances, market potential and trends. We generate a business profile that represents your company in the most attractive way possible.
    • Step 2. We structure the sale.
      We then identify the best possible price range for your business. This is based on solid facts, the condition of the market, projected growth, sales potential and the sale of similar businesses within your industry. We apply sophisticated, time proven valuation techniques to ensure that your price is appropriate for the current market condition. The price must not be too high or too low. Yet, it must represent an attractive investment potential.
    • Step 3. We network the sale.
      We utilize the latest technology to present your business to potential buyers all over the world. This greatly multiplies the effort in your favor.
    • Step 4. We advertise your business.
      Our aggressive marketing program ensures your confidentiality and provides maximum exposure for your business. Your listing is placed in various industry databases and publications which are constantly updated.
      With us, you have literally thousands of industry professionals selling your business, yet your confidentiality is always respected.
    • Step 5. We organize all necessary documentation.
      As part of our service, we gather and organize all documentation that is relevant to the selling of your business. Buyers are pre-qualified and required to execute a confidentiality agreement before receiving any sensitive information concerning the sale.
    • Step 6. We qualify the buyers.
      We prepare and present all offers. Buyers are qualified for financial ability to meet the offer. Many times a negotiation is doomed to fail because of lack of proper qualifying. As your business advisor, we can approach potential buyers without weakening your position.
    • Step 7. We negotiate for you to achieve the best price.
      Appropriate negotiation is crucial to achieving your price and terms. We have the expertise to establish sound and resourceful negotiating techniques on your behalf.
    • Step 8. We provide exceptional support to you.
      We take pride in our exceptional service. We realize that you depend on us to guide you through the sale of your business. We make the transition simple and easy for you. We know when an opportunity may arise and are always there to take advantage of it.
    • Step 9. We are there from beginning to the closing.
      We manage all administrative procedures, licenses, inventory counts and lease assignments that may be required. We work closely with your advisors to ensure a smooth transition.
    • Step 10. We are there for the transitional phase.
      Because we are in the business community, you have the option to consult with us at any time after the sale. We will provide you with any assistance you may require after the closing. We always remain in your corner!

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