Expert Advice on Selling Your Business
Mark Rezac
AGENT│PARTNER
KANSAS COMMERCIAL REAL ESTATE SERVICES, INC.
Your business is your baby. It is your pride and joy. You have invested time, money and all of your energy into making it grow and thrive. So when it is time to sell, do not rush through the process or sell your company short. Be prepared.
Understand how selling your company will affect you, your family, your lifestyle, your employees and others who depend on you.
Be able to supply three to five years of tax returns and internal financial reports as well as three to five years of financial statements generated by a third party
Learn the tax ramifications of the sale.
Meet with your financial advisor to ensure you can maintain or improve your current lifestyle.
Meet with a commercial broker to discuss the ability to find buyers at your desired sale price.
For many sellers, the business broker serves as a confidante. He or she takes this important journey with you and not only finds a buyer, but also protects you during the transaction. Some solid, first steps include:
Meet with a business broker to understand the current market. Discuss what is available, pricing, purchase options and strategy for cleaning-up financial reports.
Talk with your broker about identifying the changes ahead for you and your family.
With the help of your broker, consult financial experts about the financial changes this transaction will bring.
The benefits of using a business broker include business continuity. Because selling a company is time-consuming, the business broker can work on the sale while the business owner continues to focus on running the business. Business brokers also have the ability to reach a large base of buyers, market your company to maximize the sale price and close the deal in less time. The broker, who’s helped along the way, will be compensated with a negotiated percentage of the transaction price at the time of sale.
THINGS TO CONSIDER WHEN SELECTING A COMMERCIAL BROKER:
RELATIONSHIP. Meet with a potential broker face to face. Both sides need to be comfortable with each other. This is a big decision and can be emotional.
MARKETING. The broker should communicate with you about how they will market the business and to whom.
CONFIDENTIALITY. Because these types of sales can be sensitive, the broker must be able to keep it quiet.
HONESTY. Good brokers will be truthful about the market value of the business, even if you do not want to hear it.
Starting, growing and maintaining a business can be one of life’s most rewarding endeavors. When you’re ready to end this journey and retire or begin a new adventure, put the same care into selling the company as you did into building it.
