List my business for sale

If you own a business, you know you won’t be working forever. Maybe you are nearing retirement age. Or maybe you’re thinking about moving on to another venture. 

Regardless, it is essential to make an exit strategy, even if you think you are years away from having to make a decision. The process can take months or even years. 

Sales of businesses dropped 22 percent in 2020. So, what should you know about making a due diligence checklist for selling a business?

Tip: FREE Download a Guide to Help in Business For Sale Listing - Click Here

1. Build to Sell 

In essence, this means making a business exit strategy before you try to sell. Listing your business for sale isn't the first step in the process. Long before you do that, you need to know what your plans are. 

For example, are you going to retire or move on to another venture? Are your accounting books organized and ready? What does your business need to be saleable and look like a promising venture for future owners? 

2. Know the Best Time to Sell

Before you list your business for sale, take a look at the market to time your sale properly. If you are selling your business because your business or the industry   isn’t profitable, you probably aren’t going to get many interested buyers. 

This can be a challenge, since selling a business can be such a long process. It might require a good amount of foresight or even consulting with a professional to help give you a better idea of your chances of success in terms of timing. It all comes down to making sure you’re ready to sell when others are ready to buy. 

3. Get Your Business Looking Ship-Shape

Before you start your business exit planning, you need to make sure it presents   great—both on paper and in person. Think about what customers see when they come through your door. 

Make sure that visiting your business is convenient and pleasant. Provide great customer service and keep things looking organized. Remember that any potential buyer will experience your services as a customer first, so they need to be impressive. And don’t forget, this includes how your phone is answered and just as importantly, your online reviews.

4. Know Why You Want to Sell

Surprisingly, there are interview processes that go along with selling your business. Potential buyers want to know why you’re getting out, so it’s important that you know how to articulate that in a good way. 

Buyers are likely to be discouraged if you talk about selling your company because of a lack of success or a failing market. If you are looking for a new venture or considering retirement, approach the question from that angle. It is always a good idea to have a crafted answer ready concerning your exit strategy framework. 

5. Make a Succession Plan

Just because the business will be switching to a new owner doesn’t mean that it will be in entirely new hands. Most people who buy a company don’t want to start all over with new staff or key employees. 

Instead, if the new owners are interested, make a succession plan for your staff but keep it totally confidential.  If employees find out the business is for sale they start worrying the business could be failing or, they may not like the new owner or, they may not get the same benefits that they are currently getting or, I know friends that worked forever at a company and when there was a change of ownership they were replaced by younger and cheaper employees and I can’t let that happen to me. 

If you have a manager or other key employees the business needs to keep, they can be a huge asset to the new owners as they learn to run the business. This is a big part of a business owner exit strategy that is often overlooked.

6. Know How to Craft Your Online Listing

Like many other things, there is an art to listing and describing your business being for sale online. Doing it the right way can get a lot of attention, increasing the chances of you selling your business quickly and profitably. 

On the other hand, if you don’t know how to sell the idea of your business in an online listing, you are not likely to get much attention. People will either dismiss you, make a snap judgment, or even not know how to reach you. 

Plus, you want to describe your business as being for sale, so a local competitor or employee does not find out it's for sale.

Remember that your online listing is your company’s first impression to potential buyers. 

7. Organize Your Paperwork

To put it simply, there are many financial, legal, and marketing documents needed to sell your business. Tax documents are just the beginning. 

A professional may be able to help you organize a buying and selling business checklist that includes all the paperwork you need to keep things legal and above board. 

8. Increase Your Exposure

There are a lot of tips and tricks to get people to see your online business listing. Often, this involves knowing how to list your business in multiple categories.

For example, if you are selling a cupcake bakery, you may want to learn how to list your business under both “Food” and “Event Catering.” Most online platforms for selling businesses have categories for narrowing searches. 

Using these tools effectively is the best way to get more potentially interested parties looking at your listing. 

But these tools are far from the only way to increase your exposure when it comes to your business listing. Talking to a marketing professional may provide you with additional tips for getting your company in the public eye. 

9. Get a Business Valuation

Before you start tying up all the loose ends, get a business valuation from a professional. This will give you a better idea of how to calculate the value of a business for sale.

Several types of professionals can help you get a better idea of how to calculate business valuation. This includes accountants, bankers, business brokers, and M&A Advisors. It is best if you choose a professional who knows about the local lower mid-market companies for sale,  the ins and outs of your business and your industry, and has done business valuations before. 

This valuation will also give you some insight into what you need to adjust or change before listing your business on the market. 

10. Talk to an M&A Advisor 

One of the best things you can do as part of your business exit strategy planning is hiring an M&A Advisor. These middle-market business brokers and professionals excel in helping middle-market companies navigate every step of buying or selling a business and improving growth through acquisition. 

They can help craft an excellent M&A exit strategy that benefits all the parties involved. This especially applies if you want to list your business for sale in California. 

California has many industries, tax, environmental, and other business regulations that do not apply in other States in the US.  If you seek professional help and your business is in California, get the right professional to assist you. 

Hiring an M&A advisory firm can go a long way in helping you create an extensive market for your company. An M&A broker also provides you with all the information you need, including how much taxes you have to pay during the selling process.

If you are a retiring business owner looking to exit your lower middle market business in California, here are five tips to get you started:

1. Don't wait until the last minute to start planning your exit. The process of selling a lower middle market business can take a long time, so it's important to start early.

2. Have a clear idea of what you want to get out of the sale. Know your goals and what you're willing to negotiate.

3. Choose the right type of buyer. Not all buyers are created equal, so do your research and find the right one for your business.

4. Be prepared for a lot of due diligence. M&A buy-side due diligence is when buyers will want to know everything about your business, so be ready to provide documentation and answer questions.

5. Be flexible with the terms and conditions of the deal. It's important to be open to negotiation to get the best possible deal for your business.

Rogerson Business Services, also known as, California's lower middle market business broker is a sell-side M&A advisory firm that has closed hundreds of lower middle-market deals in California. We are dedicated to helping our clients maximize value and achieve their desired outcomes. 

We have a deep understanding of the Californian market and an extensive network of buyers, which allows us to get the best possible price for our clients. We also provide comprehensive support throughout the entire process, from initial valuation to post-closing integration. 

Our hands-on approach and commitment to our client's success set us apart from other firms in the industry. If you consider selling your lower middle market business, we would be honored to help you navigate the process and realize your goals.

If you have decided to value and then sell your lower middle market business or still not ready, get started here, or call toll-free  1-844-414-9600and leave a voice message with your question and get it answered within 24 hours. The deal team is spearheaded by Andrew Rogerson, Certified M&A Advisor, he will personally review and understand your pain point/s and prioritize your inquiry with Rogerson Business Services, RBS Advisors.