Positioning Your Company for Sale

How do I sell my company? This is a popular question asked by almost every single business owner. Many times it is easier to start the business than it is to sell the business. Yet there are some things that you can do to help in the process. It is always important to start early and lay the groundwork for a potential sale. Positioning your company for sale is something that many talk about but few ever follow through. The object here is to make a profit and to do so without having to spend a fortune in the process. While it does take money to make money and you will almost always get what you pay for, there are some steps that you can take to better position your company for a sale in the future.

The best way to position your company for a future sale is by building a strong, profitable company. Substance over form is a great thing to remember. While you might be able to whitewash the exterior, a keen business mind will be able to tell if your business is as strong as you say it is. Take the time to build a business that has a solid reputation and a sterling character. Provide the best service or product around and do it at a fair price. These are trademarks of a great company. If you are still asking how do I sell my company, then keep the following tips in mind.

Experience Matters

Most buyers are more experienced than the sellers are. They are used to taking advantage. Surround yourself with valuable people such as lawyers and other business leaders. Make sure you have experts from the field in your corner to guide you along the way.

Know The Market

Put yourself in the shoes of the buyer. What would you want if you were in their position? Further, take the time to get to know your perspective buyer. The more you know the stronger the relationship can become.

Know What You Want

Indecisiveness is a terminal cancer in the world of business. You are wavering or unwilling to commit then the buyers will walk away.

When asking, how do I sell my company?, many people fail to place themselves in the shoes of the buyer. A company that barely skates by is not an attractive investment. A company that is riddled with debt is not an attractive investment. A company with a poor reputation or a history of bad financial decisions is not an attractive investment. If your goal, as a business owner, is to sell your company for a large sum of money then you must position the company, from the start, to be great.

Make sure that you are positioning your company to be competitive in the market that you are involved with. If the competition does not know who you are then there is little chance to sell your company. If you are truly committed to selling your company then you will follow these simple truths and you will quickly find that success is already a part of your future.

Are you considering selling your business? We can help you. Visit our Sell Your Florida Business page to learn more about what we can do to help you.

Ways to Cash Out of Your Business

Selling a business is not an easy thing to do but it could be a great way for a business owner to cash out and pocket a large sum of money. However, it is prudent that the right advice is followed or else severe financial ramifications could occur. Most people start with a simple question such as, how much can I sell my company for? This is typically the question asked when the owner needs an influx of cash. An outright sale is usually the simplest way to handle this issue but it is not always the most beneficial. When it comes to cashing out of the business the options before you are numerous. Here are a few to keep in mind.

There are two ways that an owner can cash out of the business. The owner can sell all the assets associated with the company or they can sell their stock in the company. In most cases the sale of stock will benefit the seller whereas the sale of the assets will benefit the buyer. Asset buyers are purchasing all of the business. This would include the real estate, customers, and the equipment. However, stock buyers are assuming control of the company and are exposed to all the liabilities that come with it. If a lawsuit is brought against the business the new owner would be liable.

If you are asking how much can I sell my company for, then you are probably looking for a way to pocket cash. If this is the case, then you could consider the benefits of an ESOP. The Employee Stock Ownership Plan is a way to reward hard work and loyalty. This option will allow you to set up an independent trust that holds a stock for the employees for as long as they work in the business. The company buys the owners stock and places the stock in the ESOP. If an employee leaves then they are entitled to cash out their stock option. This option requires cash on hand in the event that an employee leaves. This option benefits the owner by paying them for their stock and it benefits the employees.

If an owner is looking to sell the business in the future but does not want to step away immediately they could look at something such as preferred stock or even debt. Preferred stock is something that is sold to a perspective buyer. It places cash in the pocket of the owner and allows the stockholder to learn about the business and gradually assume control. If the business is healthy and capable of taking on debt it can also secure a loan and buy the stock of the owner.

There are several methods that an owner can use to cash out of the business if they so choose. However, the best options depend on the long term and short term goals of the owner. If the owner is simply curious about how much they can sell their company for, then they are typically looking for a cash infusion and thus they do not need to sell off the company entirely.

Are you considering selling your business? We can help you. Visit our Sell Your Florida Business page to learn more about what we can do to help you.