Benchmark Business Group

Your #1 Job When Selling Your Business

February 19, 2024

Selling a business is nothing like owning and operating a business. When you’re running your business, you have control over what people are doing, how they are doing it, and when they are doing it. You have the authority to speed things up or slow them down, to bring in new talent or usher poor performers out the door. Bottom line – virtually all decisions are within your control.

During the process of marketing and selling a business, and particularly during the due diligence phase, there is a lot of activity! Information is being sought and exchanged, legal documents are being drafted, buyers and lenders have a magnifying glass focused on your business finances, inventory value, assets, customer demographics and business metrics. The attorneys, lenders, accountants, appraisers, and others, all have their own accountabilities and timelines – and they can all drag their feet when it comes to analyzing your business information.

Having a business broker to orchestrate the sales process on your behalf is essential, because you have an even more essential role through the sales process. Although you will have accountabilities for providing information and making key decisions during negotiations, you also have a responsibility you can’t take your eyes off and that’s to keep your business running profitably.

To successfully reach the closing table and sell your business for maximum value it’s vital to focus on maintaining operational stability and profitability. Buyers want to know they are stepping into a healthy business that is running efficiently. It’s your number one job while your business is being marketed and if you get distracted, you may not get your business sold.

Throughout the process of selling stay focused on these six drivers of a healthy business:

1. Engaged employees

2. Satisfied customers

3. Steady sales

4. Stable operating costs

5. Predictable profits

6. Optimal cashflow

Let your business broker manage the sales process! Pricing your business, creating the marketing package, attracting, and vetting buyers, handling offers and facilitating the negotiations and guiding the due diligence of your sale takes a qualified business broker with a good team.

As a seller you should be able to rely on the expertise of your Deal Team and keep your eyes on the prize – a well-run profitable business your buyer can’t wait to own! 

Your Deal Team members should include an attorney, accountant, financial advisor and a business broker.

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