#TempusTips: #businessowners ask: “How can I sell my business confidentially?
#TempusTips: #businessowners ask: “Should I provide seller financing to the buyer of my business?
TempusTips: 1-9 “How a biz owner can prepare their business for sale” Step #1: Organize Financials
TempusTips: 2 of 9 Series “How to prepare your business for sale”: Step #2: Review Financials
Part 3 - 9 Series “How to Prepare Your Business for Sale”: Step 3: Update Financials
Video Transcript Answer:
Not all business financials are a true reflection on how the business is performing. Make sure to get together with your financial advisor, CFO, bookkeeper and/or accountant to update your business financials. Buyers and financing entities want to make sure the financials are realistic and paint a true picture of how the business is doing.TempusTips - Part 4 - 9 Video Series: Step #4: Perform a Business Background Check
Part 5 of 9 Video Series on “How to Prepare Your Business for Sale”: Step No. 5 Obtain a Business Valuation
Video Transcript Answer:
Step five is to do a business valuation! Whether it is a business broker providing a business valuation opinion or you hire a company that specializaes in doing IT, IT is critical! to often business owners have an incorrect assumption as to the value of the business(whether to low or to high). The best way to bring some level of objectivity is to bring a third party.
Part 6 of 9 Video Series on “How to Prepare Your Business for Sale”: Step No. 6 Take Inventory of Your Assets
Video Transcript Answer:
When preparing to sell your business, it’s crucial to take a comprehensive inventory of both your tangible and intangible assets. Tangible assets are the physical items your business owns that have a clear, measurable value. These include machinery, equipment, real estate, vehicles, office furniture, and inventory. Start by listing each item, assessing its condition, and determining its market value. For instance, inspect your machinery for operational efficiency and get a professional appraisal for any real estate. This detailed inventory will not only present a clear picture of your business’s worth to potential buyers but also help you negotiate a fair sale price.
Intangible assets, on the other hand, are non-physical items that add value to your business. These include intellectual property like patents, trademarks, and copyrights, as well as goodwill, brand recognition, customer lists, software, licenses, and contracts. For example, a well-known brand name or proprietary software you’ve developed can significantly enhance your business’s value. Document all your intellectual property, ensure licenses and permits are up to date, and compile information on your customer relationships and long-term contracts. By providing a detailed overview of both your tangible and intangible assets, you can showcase the full value of your business, making it more attractive to potential buyers and facilitating a smoother sale process.
Part 7 of 9 Series on “How to Prepare Your Business for Sale”: Step No. 7 Tie Up Loose Ends
Video Transcript Answer:
Preparing your business for sale involves more than just financial readiness; it requires ensuring all loose ends are tied up to present a clean slate to potential buyers. Step No. 7, “Tie Up Loose Ends,” is critical in this process. Begin by making a comprehensive list of unresolved issues. This includes addressing any pending legal matters such as liens and lawsuits. Ensuring that all these are resolved will prevent any red flags that could deter potential buyers. Additionally, updating your taxes and insurance ensures that the business is compliant and can transfer smoothly without future liabilities.
Next, focus on digital presence and technology. Update your website and social media platforms to reflect the current state and achievements of the business. A polished, professional online presence not only attracts potential buyers but also demonstrates that the business is well-maintained and modern. Also, consider updating your Customer Relationship Management (CRM) technology. An efficient, up-to-date CRM system shows that you have a streamlined process for managing client relationships, which can be a significant selling point
Finally, pay attention to internal operations, especially concerning employees and hiring processes. Ensure all employee records are current and that there are no outstanding HR issues. A well-documented and effective hiring process can add value by showing that the business can continue to operate smoothly post-sale. Address any gaps in staffing and ensure that your team is stable and competent. This comprehensive approach to tying up loose ends will make your business more attractive and trustworthy to prospective buyers, facilitating a smoother transaction process.
Part 8 of 9 Series on “How to Prepare Your Business for Sale”: Step No. 8 Understand the Process
Video Transcript Answer:
This part 8 of a 9 part video series on how to prepare your business for sale. Step 8 is to understand the process of selling your business.
First, market your business for sale confidentially. This involves creating a compelling listing that highlights the strengths and opportunities of your business. Next, filter potential buyers. Qualify them based on their financial capability and interest. Once you have serious inquiries, require them to sign a Non-Disclosure Agreement (NDA). This protects your business information from being disclosed to unauthorized parties.
Then, show your business through detailed information and in person showing. When a buyer is interested, they will make an offer. Negotiate terms and conditions until both parties reach an acceptance. Next, the buyer will conduct due diligence. This involves a thorough review of your business’s financials, operations, and legal matters.
Finally, if everything checks out, proceed to closing. This is when the transaction is finalized, and ownership is transferred.
Final Video of a 9 part video series on how to prepare your business for sale.
Video Transcript Answer:
To sell your business the right way is complicated and time consuming. Although I gave you a road map with the prior 8 videos, don’t got about this process alone. Put together a team of professionals experienced in this process to help you prepare your business for sale. The ideal team would be an accountant/bookkeeper (to assist with the financials), a business law attorney (to advise on pending legal issues and sales contract), business consultant (to assist in executing on tying up lose ends) and finally and most importantly a business broker also known as a business intermediary or business advisor. An experienced business broker such as myself with over 16 years experience will be the only professional out of your team who can help you from preparing your business for sale to selling it.“Award Winning” Professional #businessbrokers Tempus VP Frank Carrillo + Joel Acevedo.
Video Transcript Answer:
I want to take a moment to recognize two outstanding members of our team: Vice President and business broker Frank Carrillo, who has been with Tempus since 2016, and business broker Joel Acevedo. These two incredible professionals have recently been honored with the Million Dollar Plus Award by the Business Brokers of Florida. Their dedication, expertise, and commitment to their clients are truly inspiring, but what stands out even more is the quality of their character—they are, above all, good people. At Tempus, we believe in the power of integrity and professionalism, and Frank and Joel exemplify this every day. If you’re passionate about helping businesses thrive and are considering a career as a professional business broker in Florida, I encourage you to reach out to me. Let’s discuss how you can make a meaningful impact in this rewarding field.9 Steps to Prepare Your Business For Sale
Video Transcript Answer:
I just concluded a 9 part video series on how to prepare your business for sale but in today’s video I am going to list all 9 steps. Here we go:
Step 1 is to Organize your business Financials such as your PNL, Balance Sheet and tax returns for the last 5 years. Step 2 is to Review the Financials and understand what they are saying, step 3 is to Update the Financials so they truly reflect what is happening with the business. Step 4 is to Do a Biz Background Check, step 5 is to obtain a Business Valuation step 6 is Take Inventory of all the business tangible and intangible Assets, step 7 is to tie Up Loose Ends, step 8 is to Understand the Process and finally step 9 is to Build Your Team of professionals who will assist you in preparing your business for sale
Watch out for this deal breaker prior to buying a business.
Video Transcript Answer:
One of the biggest deal killers right before the closing of purchasing a business is when the buyer learns of liens not previously disclosed by the seller or not picked up during due diligence. Some liens can be resolved quickly but others, such as a large debt secured by the business assets, may prove to much to overcome inhibiting the acquisition of the business.
