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How to Sell Your Company for More Than It’s Worth

Are you considering selling your company?

Buying low and selling high is the dream of almost every single person in the world. When questioned how to sell your company for profit, the answer lies with people like Warren Buffett and Donald Trump billionaires. This advice sounds amazing, is amazing, but it is much more difficult to navigate than you would think. If it truly were that simple there would be many more millionaires walking around today. If you are looking to sell your business the odds are not in your favor. Many businesses are listed but never sold and many times the ones that do sell are sold for much less than the seller hoped for. However, Michelle Seiler-Tucker, business broker and founder of Capital Business Solutions, says that you can potentially sell your business for much more than its worth if you have the ability to follow a few instructions.

“Unfortunately many business owners wait until a catastrophic event has occurred in order to sell their business and when that usually happens the business is typically trending downward and it’s not making as much money as it once was,” she says. “The best time to sell a business is when your business is doing well.” Timing is everything in life and in the business world it is no different. Do not wait until your business has peaked. If you are going to sell do so when business is booming.

She also noted that the majority of businesses do not have their books in good enough shape to be attractive to potential buyers. If you are hoping to sell high, then you need to have your books in tip-top shape. “Most business owners live out of their business in order to decrease their tax liability so many [of them] are running all kinds of personal expenses and non-recurring expenses through their business, such as travel, meals, entertainment, repairs, etc., and this is really true discretional earnings so we have to dig deep, go through all the books and records and add those personal and non-recurring expenses back to the bottom line. This is one of the most crucial aspects of learning how to get your company to sell for more than it is worth.

Branding is also important to the selling price of your business. There are five levels of branding that range from not knowing the company to only using and recommending the company. You obviously want to be recommended by customers because that is free advertising. Not only is branding key but so are the customers. If you have a small list of clients, then your business is not going to be as attractive. If you are the only client, then you are in trouble.

Understanding what makes a business valuable is what will help you to set your business apart from the plethora of others. Not only do you need to invest in a strong brand but you need to diversify your clientele. Learning how to put your company up to sell is not the easiest thing in the world but it can be accomplished by learning the ins and outs of your business. Once you are able to do this you will be well on your way to selling your business for much more than you ever thought possible.

Are you considering selling your business? We can help you. Click the button below for more information.

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Sell a Business Successfully

Some hurdles to  consider when selling a business

According to a recent survey 6 in 10 business owners are looking to sell a business in the next year alone. This is a sharp rise from other years and many are placing the blame on baby boomers that are looking to retire or simply move on to another field of interest. If you are one of these owners, then you have many large hurdles in front of you that need to be cleared before you can walk away with money in your pocket. Having a business to sell is a great way to finance a new career path, retirement, or it can help you tie up loose ends. Regardless, it is your business and you can choose what you do with it and when you do it. Here are some things to remember along the way.

Preparing Your Business for Sale

While your word might be as good as gold, perspective buyers are not going to simply take your word as gold. When it comes time to sell you need to have already prepared the proper paperwork. This includes identifying your accounts are receivable as well as your accounts being payable. You should have a clear list of clientele and what the relationships consist of. You need to clearly identify the employees you have as well as their importance to your business. The proper research must be finished before the business ever hits the open market. Having a business to sell is one thing. Having a business ready to sell is an entirely different ballgame.

Valuation

What is your business to sell worth? This is a million-dollar question that many have struggled to identify. The best way to determine the value of the company is by adding all of the assets and subtracting the debt. Another option is to look at yearly income and then multiply by 5. One of the best options is to bring in outside counsel for an unbiased and professional approach. Do not sell yourself short but make sure you do not overprice the business.

Who Is the Target?

Who are you going to sell your business to? Finding the right buyer can be very tricky and many times business leaders will seek the help of investment bankers to find potential buyers. When you have a business to sell the last thing you need to be worried about is finding a buyer. Make sure you have exhausted the ranks and you have placed the word with the right people in the right circles. Spend time talking with others in your field. Perhaps a competitor would like to buy you out. Regardless of where they come from it is important that you line up potential suitors before you pull the plug.
Your business has been your life for a long time. You have hundreds of thousands of hours invested and untold amounts of money. Making the right decision about selling can be made a lot easier by simply doing your homework along the way. If you have a business to sell then you need to take the time to properly vet and document all there is to know about the business before it hits the market.
Are you considering selling your business? We can help you. Contact us anytime at http://www.newgatecapitalpartners.com/business-brokerage/

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How to Market Your Company for Sale

Company for sale

For many small business owners, the desire to sell a company is not very strong. However, there do come times when it is necessary or it is simply time to move on and market your company for sale. Yet navigating the waters of selling a business can be harder than trying to start the business. It is not in your best interest to simply place a sign in the window and you certainly want to be careful when it comes to customers, creditors, and the competition. Unless you are going to target a specific competitor, you do not want them to know you are looking to sell. Discretion and confidentiality are the keys here and they need to be listened to. You could do a quick Google search for “sell my company” but that will only take you so far. The best thing to do is to prepare for the sale of your company now for what could potentially come in the future.

The first thing you need to be aware of is the definition of your likely buyer. Who are they? Who would want to acquire my company for sale?What will they need to possess in order to purchase? Is your business going to be marketed towards anyone wanting to start a business or does it need to be more specific? Can anyone with money buy the business or are you looking for a credentialed buyer? Are you looking for a sole individual buyer, a group buyer, or are you looking to sell to a competitor? These are all questions that need to be answered when you start asking about selling your business.

Once you have determined the type of buyer you are going to market to, you need to research how to find that person/group. It might be beneficial to compile a list or a guide of the specific details you are looking for. You may be able to list your business for sale on the Internet or maybe you will choose to use a classified section in a reputable business magazine. You also have the option of hiring a consultant to help in this matter as they could have deeper connections in your field. They could also have the ability to tap into perspective buyers.

Once you have identified the person you are looking for and the manner in which you will seek them, take the time to study your area and learn what could make your business more appealing/attractive. This is also a good time to examine your business and adjust any areas that might have been overlooked or neglected. Remember, a healthy business is a very attractive business. If your company is deemed unhealthy it could still sell but it will not bring the revenue you seek.

Once you come to the point where you say, ?I want to sell my company?, you need to already have laid the groundwork for the sale to be successful. You may want to read this post on how to exit a company successfully. Without proper due diligence and legal wrangling your sale will fall flat and you will be back to square one. The best way to market is to build a strong business, know what you want and whom you want, surround yourself with the best resources, and ultimately allow the business to work for you.

Are you considering selling your business? We can help you. Contact us anytime at?http://www.newgatecapitalpartners.com/contact/

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How Do You Make Your Company Sale-Ready from the Beginning

When starting a company your goal is to eventually grow and sell it for more money than you could ever imagine! That is the goal of many entrepreneurs, to make their companies sale-ready, and yet very few make the needed changes to achieve that goal. The most common mistake is failing to lay the groundwork for the company to survive without you. The key is to make your company sell ready from the very beginning. Regardless of when you sell the company, there are active steps that you can be taking to make sure your business can be sold at any time. The following tips are just a few ways that you can make sure that when you do place your company for sale, you will be able to achieve your dreams.

Buyers are looking for several key attributes in a company that is listed and ready for sale. They are interested in profitability, the culture, the management, how competitive your business is, and ultimately, how well the company can be scaled. Incurring large sums of debt is a bad policy to live by personally so why do so many businesses do it? If your company is in debt this will detract from the profitability and will likely scare off investors. Does your company for sale have a competitive edge? If your business is simply providing commodities that can be purchased elsewhere then you are not making an attractive business for perspective buyers.

Is growth a possibility with your business? Most prospective buyers are not looking to be painted into a corner. If the business has no potential for growth, then the buyers are not going to waste their time. Make sure you are building your business with growth in mind for it to be successfully sale-ready. Finally, do your employees understand the fine details of the business? If the team is poorly trained, or if you are simply poorly staffed, buyers are not going to find your business as attractive as they could.

There are also several ?technicalities? involved with the business model of trying to build it for future sale. Are your employees classified correctly? If they are not then you could be opening your buyer up to potential tax issues. If you are leasing a space for the business, has the landlord approved the transfer of the lease into another name? if not, and the business must move, is this going to be a workable solution? How are the long term contracts of the suppliers that you use? Many times these contracts are based on personality and any unsettling movements in the business landscape could cause major ripples. Has the business handled the proper tax liability?

If you are looking to the future, then you are probably already planning to have your company ready for sale at some point. Make sure you have examined these aspects of business life to assure that you are doing all you can now to prepare for the future. The decision to place your company for sale is not something to take lightly. Setting the groundwork for future sale is going to require a bit more research and legwork but the benefits will far outweigh anything you could imagine.

Are you considering selling your business? We can help you. Contact us anytime at?http://www.newgatecapitalpartners.com/contact/

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How to Exit a Company Successfully

exit a companyMany people will say, ?I want to sell my company?, and yet they have no idea the amount of legwork and research that must go into this transaction. Selling a business is hard work and demands that a team of professionals is on board. There are thousands of businesses for sale all over the world but only a handful will ever sell. The keys to exit a company with a successful sale are not so much in the asking price but in the health of the company and the financial reports that need to be up to date. Just as you would never leap into a pool without first looking for a landing place, you must never jump headfirst into a sale without first doing your due diligence. Not only is this a legal term but it is a practical piece of advice. Examine the health of your company and then proceed to?the next step.

From a legal position, there are many hurdles and bureaucracies that need to be handled before the sale of your business can take place. Issues associated with taxes and pensions must be addressed. You must take the time to have the business properly audited from top to bottom. Every account must be looked at and every penny must be accounted for in the company before exiting. In addition, there are tax issues that must be understood. Whether it is a shared sale or an asset sale, the tax implications are enormous and they must be met. This is why a knowledgeable attorney should be sought out. It is preferable to seek out a lawyer that has experience in handling acquisitions. If proper due diligence is not carried out it will only serve to hinder the sale, slow the sale, or it could cost the sale altogether.

Taxes are always a part of life and they are always a part of a business. There is no escaping this fact. Embracing the reality will make the transition much easier. Simply saying, ?I want to exit and sell my company?, will not make the tax collectors go away. As tax laws are ever changing this is another reason for you to seek out the help of a skilled tax lawyer as well as an accountant. This will also be the time when an accountancy review of the business should be handled as it will establish the baseline price of the business in the future.

When you exit a company?there could also be?implications on your retirement plans or pension plans. These laws and requirements are also changing every day and you need to have a properly trained associate that can lead you through this process. There are no simple answers and there is nothing ?sexy? about the process. Selling your business is hard work and it demands proper care and attention.

?I want to sell my company!? that is a great idea to have but there are practical implications that must be dealt with first. The best approach to take is to start your business with an end game in mind. Make yourself replaceable and make sure that you have a healthy business before you try to sell. Following through on this will make the process much less complicated and it could result in a much higher payout for you in the end.

Are you considering selling your business? We can help you. Contact us anytime at?http://www.newgatecapitalpartners.com/contact/

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Buying and Selling Business: An Overview

What to know when buying or selling a business

Over 250,000 businesses change hands every single year. The majority of these businesses are small but a few are mid to large companies. The small business sales never make the news but we tend to hear about the billion dollar acquisitions of the fortune 500 firms. You do not have to be a billionaire to become involved in the buying and selling business, but you do need to be driven, competent, and willing to work. Here are a few examples of things to keep in mind if you are interested in selling your business, buying a business or simply flipping a business for a profit.

 

Purchasing a Business

The purchase of a business can be a very daunting task. There are thousands of papers to look at and untold amounts of time with the lawyers. No matter what kind of business you have or may be looking at there is always someone interested in buying. However,  actually buying a business requires much work behind the scenes.  A reliable team of business experts should help to decipher the legal notices, disclaimers and purchasing documents. There should be a clear delineation of process and expectation as well as timelines for both the buyer and seller.

It is also important to determine whether or not you are interested in a franchise or a stand-alone business. Buying and selling a business is all about managing your risk and your reward. Franchises have inherited benefits but they come with strings attached. Stand alone businesses are much more prone to failure but they have a potentially higher ceiling in the long term.

 

Selling a Business

If you are looking to sell a business, then you too have much work to do. Lawyers call this due diligence. This process will require that you understand the ins and outs of your business. You are going to be asked for all financial records and to disclose all clients. When selling your business, you should consider it a very thorough medical examination. The prospective buyer wants to know all the gory details before they sign the dotted line. Take the time to prepare all the paperwork beforehand and be able to justify your asking price for the business.

 

Selling and buying business models or businesses all together can be a very rewarding and profitable venture if you have the ability to spot a good deal, as well as the foresight to see how you can improve an established business. Many of the success stories that we have heard are very rare. While it can be possible to sell your company for millions or billions, this typically does not happen overnight. Success is possible but it rarely happens in an instant. The Self Employed has a great article on flipping a business.

If your long term goals include buying and selling in the business world then you need to familiarize yourself with those that are already in the business. Take the time to network and grow relationships. These relationships will benefit your career and they could make it much easier for you to do business in the future. The buying and selling business can be yours if you put the work in.

Are you considering selling your business? We can help you. Contact us anytime at?http://www.newgatecapitalpartners.com/contact/

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3 Reasons You Should Sell Your Business

Many business owners and entrepreneurs have found themselves asking the question of should I sell my company? It is a hard question to answer because so much goes into the building, growing, and structuring of a company. When it does come time to sell your business there are so many variables that the process can often become very murky and very difficult to traverse. There are multitude of reasons that a person could sell their business but there are only a handful of good reasons. This advice is only going to list 3 of the most common reasons that are given for selling a business. So the next time you are wondering if you should sell, think back to this and see how it stacks up.

The Time is Right

Timing is important in everything. If a car is not timed correctly it will not run. If a baseball player does not time a fastball they will strike out. If an owner does not time their business sale perfectly they will miss out on a great payday. The markets typically dictate when to buy and when to sell. If your business has been established and you have a great reputation, you are halfway home to a great sell off. Timing is key due to the amount you receive but also based on risk. The longer your business is in operation and the larger it becomes, the more risk is involved and it becomes more likely that a spectacular fall could occur. Remember, a business has great value but it has no liquidity until a transaction has been completed.

The Risk is Too High

Another reason CEO’s and founders give for selling the business is that they are simply tired of the risk. Running a successful business is a very risky venture. You are attempting to judge the markets and seek to fill a demand before it actually becomes a demand. The chances of failure are sky high and the number of failures versus successes is staggering. Many business owners are simply tired of the grind and the worry associated with the constant risk taking. Much like the blackjack player has to know when to walk away, so must the company owner. Should you sell your business? Only you can answer this question, but if you have been paying close attention to your business the chances are you will know when the time is right to remove the risk from your life.

Burn Out

Perhaps the most commonly used reason for selling the business is that the owner/founder simple ran out of steam. Many business owners invest 15, 20, maybe even 30 years in their business. At some point, retirement begins to sink in and they start looking for a way out. For others, they simply realize they are bored or that they need to follow another opportunity. This is very common.
Ultimately you need to remember that you are the owner and you have the final say. If you are considering selling the company do not simply ask, should I sell my company. Be prepared. Have a plan. Make sure that you are the one dictating the terms of the engagement and not the buyer.

Are you considering selling your business? We can help you. Contact us anytime at?http://www.newgatecapitalpartners.com/contact/.

 

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Digital Disruption: How It Changes A Business

What exactly is Digital Disruption?

Today digital technologies are influencing the evolution of successful business models.
Digital disruption is the change that occurs when new digital technologies and business models affect the value proposition of existing goods and services.

Digital disruption has already happened and will continue happening; changing the way business interacts with customers and each other.
Here are some instances of business models evolved from digital disruption:

* Most popular media owner creates no content (Facebook)
* Worlds largest taxi company owns no taxis (Uber)
* Largest accommodation provider owns no real estate (airbnb)
* Largest phone companies own no telco infrastructure (Skype, WeChat)
* Worlds most valuable retailer has no inventory (Alibaba)
* Fastest growing banks have no actual money (SocietyOne)
* Worlds largest movie house owns no cinemas (NetFlix)
* Largest software vendors don’t write the apps (Apple & Google)

 

Check out this video
Digital Disruption: Unleashing the Next Wave of Innovation

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