AudioBlog: A combination blog post and podcast.
5 Things to Do To Sell Your Business Through a Business Broker
Coco Soodek interviewed Tony Calvacca, business broker for 17 years and State Board President of the New York Association of Business Brokers, about the things you need to do to sell your business through a business broker. Here are five things you can do to sell your business through a broker.
Listen to the full interview here!
Identify your market.
Do you own a main street business or one in the lower mid market? Main street businesses generate less than $1 million a year (barber shops, coffee shops, restaurants, etc.), while businesses in the lower mid market make between $2 million and $20 million in sales each year.
Clean up your financials.
Make sure your bookkeeping is detailed and accurate. Don’t use your business account to make personal purchases just to keep your tax burden low. It makes it that much more difficult to put a real value on your business when you get ready to sell. You may need to spend a few years working with an accountant to get your business in order.
Get connected with a business broker.
Call your attorney, financial planner, or accountant and ask them to give you a referral for a reputable broker in your area with whom they’ve done business in the past.
Line up financing.
Identify lenders that are willing to work with potential buyers. Having financing lined up before you begin negotiating with buyers will give you an advantage. It inspires confidence and good will with potential buyers that may have problems with securing financing for the purchase.
Be prepared to lend.
If you are selling a “main street market” business, you may have to help the buyer by taking 60% of the purchase price over 3-5 years.
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