August 2015

Keep it Confidential: When Selling your Business

Confidentiality when selling your business

confidentiality - Selling your business

The best way to relate to a situation is imagining you are there. If I were in a job, everything is going well, and then, rumor has it the company is on sale. The first thing it would come to my mind would be, what?s going to happen to my job? Should I start looking for a new one?

When selling a business the best is to do it discreetly for many?reasons:

News that your business is for sale can generate negative reactions among your employees, customers, suppliers, creditors and bankers.

As an employee, I believe this would lower the morale and make others nervous affecting productivity and customer service. Your competitors can get predatory and spread the word. It opens the door for them to steal business from you.

You, as a business owner, want to protect your business at all costs. Whatever is the reason for you selling your business, it is imperative to be discreet. Hiring a business broker can be beneficial when it comes to selling your business while keeping a low profile.?? They can list your business for sale while at the same time protecting the identity of your company.

A business broker uses a document called a Blind Profile, a document describing the company without revealing its identity.? In the case of a buyer showing up, he must sign a confidentiality agreement to have access to any sensitive information, protecting you and your business.

You as a business owner should focus on running your business even if it?s on sale. A business broker is an intermediator who will help you to run the process smoothly from beginning to end.

 

NewGate Capital Partners can help you sell your business.?Contact us anytime at?http://www.newgatecapitalpartners.com/business-brokerage/

 

 

Why Hiring a Business Broker when Selling your Business is a Wise Idea

How a broker can help when selling your business.

For starters, a broker is an independent agent whose main responsibility is to bring sellers and buyers together. If you hire a real estate broker to sell your house the broker acts as a middleman, he doesn’t own the house and he instead facilitates the transaction. Just like with a house if you have a business, you as an owner can sell it yourself. However, there are many reasons why you should consider hiring a business broker:

      • Paperwork: Do you know how much paperwork you will need if you are selling your business? According to the Small Business Administration SBA you need to prepare a sales agreement. What else? You can invest your time doing the research on your own or consult a business broker. A business broker’s expertise consists of navigating through extensive paperwork and the formalities in a daily basis. Having an experienced business broker on your team will save time completing paperwork. Don’t forget that time is money!
      • Business Continuity: Selling a business is a full-time job as it is. The owner should maintain focus on running the business and take it to its full potential. All of these while selling.
      • Confidentiality: If you are an owner and are selling your business how do you keep the matter confidential from employees and other stakeholders. You don’t want anyone to panic. The situation can be disruptive to the normal operations of your business. If you choose a business broker, he can protect the identity of your company while on sale. They can use a blind profile, a document describing the company without revealing its identity. We are going to talk further about ‘Confidentiality when selling a business’ in our next blog.
      • Valuation Knowledge: Brokers can help you determine the value of your business. They have access to tools such as business transactions databases. There are also other variables that affect the value of your business. A broker can provide guidance calculating the accurate value of your business.
      • Marketing: Business brokers can help you market your business. They can suggest diverse ways to advertise and put your business out there.

Ultimately, the decision is yours, you should take in to account the variables of time, money and resources and put on a balance and see what works better for you and your business.

New Gate Capital Partners is here to answer your questions, we can help you to sell your business.  Feel free to check out our business brokerage page.

Thinking of Selling your Business

You are contemplating selling your business and don’t know where to start.

We suggest asking yourself some basic questions, start from there, and then talk with your trusted accountant and/or attorney.

The main question : Should I sell my business?

    • Why are you selling your business?
    • Is my business ready to sell?
    • Is the business profitable?
    • What type of professionals do I need in my team?
    • Are the current market conditions right?
    • What’s the paperwork?
    • What about taxes?

  • These are just a few of several questions you may have and need answers for before selling a business.

    Selling your business may be a daunting journey but it doesn’t have to be scary. You can have many reasons why you are considering selling, it may be burnout, retirement, health, it’s time to pursue other passions or you are leading a different direction in your life. Whatever it may be NewGate Capital Partners are here to assist you in the process. For us, each potential new client is an opportunity to provide something exceptional, focusing on important things like performance, integrity, and trust.
    We are a team of Florida business brokers ready to assist you in selling your business. If you have more questions about how to sell a business, feel free to contact us anytime at http://www.newgatecapitalpartners.com/business-brokerage/

    Recommended article:
    Thinking of Selling Your Company? 8 Things to Consider First