Be Certain of Selling Motivations
What reasons might you have to sell your business? Do your motivations change from day to day or week to week? Having a clear understanding of what is driving your interest to sell is critically important for you AND your advisors. A proper marketing strategy depends on understanding these motivations.
If there are time limits involved in selling due to health issues, debt stresses, partnership disputes, IRS demands, etc., all the cards need to be put on the table with your advisor. The industry “average time to sell” a business is nine months to a year. The need for a quick sale will require the price and marketing strategy to be set accordingly. Business values may be impacted by urgent situations, but proper planning with your advisors can optimize the situation.
We have seen business owners shut their doors rather than adjusting their asking price or making advisors aware of a critical deadline soon enough to adjust marketing strategy accordingly. Offers had been made and turned down one month, yet the next month the seller was liquidating without a hope of obtaining any kind of sale.
Maybe taking a partial cash payment with future payments makes sense, especially if the buyer will relieve the business owner of other obligations such as a long-term property lease. Holding out for all cash at closing may not always be the best answer.
Be honest with yourself and honest with your advisors to get the best results. Talk to your Apex Business Advisor for assistance.
For those of you who have an interest in long term planning to maximize the value of your business for eventual sale, The De Soto Chamber of Commerce is sponsoring a seminar titled, “Build Your Business to Sell: How to Profit Now AND Profit Later”.
Speakers will be our very own Anita Lieser and Deborah Kohler of PGP Business Coaching and Consulting. It will be held October 24th from 7:30 to 9:00 am and will include breakfast. For more information and registration contact Maureen Befort at or at 913-583-1585.
