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If you’re thinking of selling your business, this post is a must-read for you.
We’re all familiar with that sinking feeling in the pit of our stomachs that comes when we realize we’ve made a bad purchase. But it’s nothing compared to the anguish of realizing you have made a bad deal when selling off a business you’ve invested years of work into.
For most entrepreneurs, selling their business is an emotional experience. But the last thing you want is to feel like you didn’t get as much from the sale as you could have, or that you’ve sold your company to an individual or group that doesn’t value it and won’t preserve your legacy.
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If you want to avoid “seller’s remorse,” here are three things you should do before closing a sale on your business.
1. Get a Valuator
Before you can start negotiating a sale of your business, you need to know the value of what you’re selling. Your business may be worth much more than your revenues and assets combined. Therefore, make sure you get a professional valuator to help you figure out the current market value of your business.
2. Hire a Broker
If you’ve never sold a business before, your best course of action is to hire a mergers and acquisitions brokerage. These professionals will guide you through the process and handle negotiations on your behalf.
A broker help you get a fair price for your company. Additionally, they can help you identify and approach ideal buyers. Companies like Beacon Mergers & Acquisitions rely on teams of legal and business experts to help you find a deal you’re actually excited about. Moreover, they will help you avoid selling your business in a deal you’ll regret.
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3. Screen Buyers Before Selling Your Business
Not every buyer will see your business the way you do. If you feel strongly about what kind of buyer you want to see take over, it is important to screen potential buyers.
You may only want to sell to someone who plans to maintain your business in something like its current form. In other words, you would rather not sell it to a private equity firm that will strip it for parts. Screening buyers is a service that some mergers and acquisitions advisors provide as part of their package. So be sure to ask when considering possible brokerages.
Selling Your Business Is Kind of a Big Deal
Even in the best-case scenario, when the day comes to sign on the dotted line and hand over the keys to your business, you’re bound to feel a bit of a lump in your throat. But when you close a sale on terms you’re happy with, there’s also a feeling of pleasure when selling your business. You’ll feel pleased that the company you created will carry on. And you’ll be happy about the value it generated for you.
You’ve put in the energy over the years to grow a successful business. Therefore, it only makes sense to make sure you end on a high note. So don’t rush into things. And always make sure you have the expert help and advice. This will ensure you get a good deal when you sell your business.