Though the correct answer is that no one can know for sure. Most often it is price, terms, and conditions that sell a business. The lower the price, the more affordable. In addition, the lower the down payment and a greater amount of seller financing, the greater the chances of selling the business. The average time is 7 months from listing to close, however, on larger companies, it can take 12 months or longer. With this time frame in mind, it's important to be proactive when considering your exit strategy and get your "confidential" business evaluation sooner rather than later.
Most business owners plan to sell within the next few years. A seller's market along with an aging baby-boomer population is causing many entrepreneurs to consider exiting. Recent reports from The International Business Brokers Association (IBBA) indicate that retirement remains the leading reason that business owners went to market. In addition, buyers are returning to the marketplace in larger numbers due to the economic rebound.
Buyers today are market educated and increasingly aware of the opportunities coming to market and are therefore ready to make a move when a strong company becomes available.
With the number of transactions increasing, seller confidence has also risen and the findings indicate that it is currently a seller's market. Business owners selling now don't have to resign themselves to a buyer's market conditions. As more and more baby boomers seek to retire and put their business on the market, the oversupply of business ...
My first response is to explain that the current market is typically what will dictate the value. A business valuation can help determine an approximate value, however, it is really a matter of what a buyer is willing to pay and what you are willing to accept. It's understandable that you would value how much blood, sweat, and tears you have invested in your business or how much money you have invested, the customer base you have built, whether you have a niche product. These things may matter to you but not have an effect on the actual value. The truth of the matter is that what you finally accept from a buyer is what your business is actually worth.
As a business owner, you learn to tolerate the window shoppers. They come in, look around for a while, ask a few questions, and then leave empty handed. However, you learn to appreciate them because they may provide feedback to another potential customer, or give a good referral. There usually is no harm in accommodating a window shopper, however, when it comes to selling a business, these types of so-called buyers are not ones you want to accommodate. You want to avoid them at all costs, because in the end it will cost you valuable time and potential money.
Spring is here and soon you will see green everywhere you look—blooming trees, new grass, and for most people tax returns! However, if you are a business owner tax season looks a little different for you. Although you will not be eagerly anticipating seeing any green returned to you this season, you will still want to keep your eye on your green, especially if you are looking to sell your business. This spring, take the right steps toward getting your records in order. In specific your tax returns!
ASK YOURSELF THESE IMPORTANT QUESTIONS WHEN LOOKING TO BUY OR SELL A BUSINESS:
After months on the market, you are no closer to a business deal than the day you listed your business for sale. Prospective buyers have come and gone and still no sale. You may be downright stumped wondering why your business hasn't sold. Here are four reasons why your business may still be on the market.
You're a business owner and you've made the decision that you are ready to sell. You've successfully manage and marketed your business for years. You know your customers, products, suppliers and employees. You feel confident in your abilities, but does that qualify you to sell your business yourself or should you consider hiring someone to sell it for you? And, if you do, who?