You may have asked how do I sell my business and who do I list it with: a realtor, commercial agent or a business broker?
The best analogy I can assimilate this to is that you would not go to the optometrist to fix a tooth. Although both are Dr’s they have different specialties as well as different tools, much like a business broker has for selling your business.

#1 Tools
A realtor has the MLS and a commercial realtor has Loopnet. I have an optimized site to buy and sell a business, subscriptions to many business for sale sites, nearly 900 cooperating business brokers in my network, a direct marketing campaign specific to your business and access to all of the information to make it successful, I have a database of buyers, investors, CPA’s, immigration attorneys and lenders to distribute the basic listing information for all of their interested clients.

#2 Confidentiality
Unfortunately I have seen confidentiality breached many times and many different ways. I have seen pictures of the business in the MLS, the name in the description and sometimes a note to not bother the employees. Last week I was in a meeting with my buyers and the listing agent was a realtor and he exposed the business to an employee. This can create a loss of employees, clients may not come back and I have even seen receivables not be paid. I will confidentially market the business, it will not be divulged to anyone that we have not spoken to and interviewed, all clients will also sign confidentiality agreements and information will not be shared with employees, vendors, competitors or anyone we feel will not have the ability to purchase your business.

#3 Professional Marketing Package
A pictures, paragraph and a P&L will not sell a business anymore. Rarely do I receive a professional marketing package from another business broker but have never received one from a realtor or a commercial agent. My marketing package will include a complete financial recast along with a SWOT analysis, a complete business profile to give a buyer an idea of what is needed to run the business, owners and employee duties, history, projections, video, pictures, asset lists and so much more. My marketing packages will typically start at a minimum of 10 pages for a very small business and will go to 20, 30, 40 and more pages.

If there are any additional questions ask for an existing listing to review, ask for proof of completed transaction, marketing methods, confidentiality forms, processes…if you receive any hesitation you should not be dealing with that business broker.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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You’ve been all the way through the business transaction process, and you’ve just left the closing table, now what?

The time you’ve spent getting your business from the listing to the close of the sale has probably been very hectic and stressful, so the good news is that particular weight has been lifted from your shoulders. There will be no more late nights getting together financial documents, no more balancing running your company while trying to make time for all that selling your business requires.

Now that the business is sold, it is in the hands of a new owner, and this can be a troubling experience for some sellers. In most sale arrangements, the old owner agrees to stay on for a time for training and/or consulting work, or even as an employee for a while. No one is going to run what used to be your business exactly like you did, so the key to maintaining a friendly relationship with the new owner is to not be too upset with any changes they choose to make. This is especially true if you offered to finance part of the sale, as you want to be sure that you eventually get paid in full. Be optimistic about changes, and try to see them as a new direction for the company brought on by the creativity of the new owner.

Even if you have agreed to stay on for a period of time, it is likely that your role in the business will be substantially less than it recently was, so enjoy the break from responsibility. Your involvement should decrease fairly quickly to a point where you are no longer needed.

The next step for you will be deciding what to do with the proceeds of your business sale. If you are entering retirement, then the services of a financial planner are probably in order. If you still have many working years ahead of you, you might consider business investments that will keep you active and earning. Many ex-entrepreneurs find it hard to let go of the business owner life, and many decide to invest in or buy another business. Ask your business broker about the options you may have to either purchase outright or invest in (without having a heavily active role) another business venture.

As a business owner, you have worked night and day on your business, so perhaps the best thing to do after leaving the closing table is go on a well-deserved vacation! Whatever you decide, be sure to seek the advice of professionals like financial planners and business brokers to end up at the best decision for you.

Have you just sold your business and are looking for a new business venture? Leave us a question or comment here, and we will be happy to assist you on this next stage of your life!

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Business brokers get a lot of questions from business sellers, and one of the most common topics revolves around how to bring in buyers without letting the world know that the business is for sale.

Why is this an important point? Confidentiality during a business transaction is paramount. As a seller, you don’t want the competition, your staff, or your vendors to know the business is for sale until the deal is done. A competitor can exploit your status, employees may jump ship, and vendors might tell their other clients about your impending business sale.

Discretion and confidentiality, therefore, are the name of the game when it comes to selling your business.

As a small business owner, however, you may find this counter-intuitive. The way you have brought success to your business is by getting the word out there. You have used networking strategies to make sure that as many people as possible know about your business and what you can do for them. You have put out marketing campaigns that may have included mailers, signs, posters, emails, and flyers. The more people you reach and the louder your message, the better.

So how do you balance the need to bring in buyers with the need to keep the whole thing under wraps? Don’t go it alone.

Confidentiality during a business transaction is one of the most important responsibilities that a business broker brings to the table. Trying to market your business yourself can lead to disastrous results, as it can be hard to know who to trust and who to disclose your sale status with.

Your business broker will be able to market your business in a variety of ways:

-A good broker has access to a number of business-for-sale databases that are available to other brokers and even to those who are searching online on their own. These listings give a prospective buyer a good idea of your business and the numbers without knowing which business it is. If they are interested in finding out more, they will be required to sign a non-disclosure agreement before they are allowed to know any business or location specific details. You can even specify a list of those (like competitors) who you would like to be kept from finding out your business status.

-Most brokers also have lists and contacts with prospective buyers, so when your business gets listed, they will let those folks who’ve been looking for a business like yours know that it’s available.

-Business brokers also have contacts within the local business community, and are therefore able to let interested parties know about your business without giving any specific information that would let someone figure out which business is for sale.

-Depending on the type of business you have, certain types of marketing may work better than others. An experienced broker will know which methods will bring in the right buyers and which methods are a waste of time, and will implement a marketing plan for your specific business accordingly.

The message here is the confidentiality of your business sale is of the utmost importance, but so is getting you a buyer and getting your business sold. By employing the services of a qualified and experienced broker you can have the best of both worlds.

Are you a business seller who has had issues with confidentiality? Do you have questions about how we can market your business successfully while keeping the whole transaction under wraps? Leave us a comment or question here and we will be happy to address and concerns or questions you might have.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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You are well on your way to a business sale, and as you and your buyer hash out all of the final details, one aspect of the transition you will need to consider is how and when to tell your customers that the business is changing hands. If you have a business that does not have specific and personal client relationships, then this part can be easy or even left up to the new owner. If, however, you have a business with a defined client list, like a house cleaning company or something similar with service contracts, then it will be up to you to help the transition to new owner go smoothly.

One way to announce the change to new ownership is by sending a letter or an email announcement to your current clients. You will want to time this carefully, as letting them know about the business sale before it is a sure thing can be problematic if the deal happens to fall through.

Some things to include in your announcement are:

-How much you have appreciated their business and how you’ve enjoyed owning your business.

-Tell them that you will be transferring ownership of the business, and when the new owners will be taking over.

-Give a brief description of the new owners, including a bit of background and why you are willing to endorse this new owner as the representative of your business.

-Explain that the services they receive will not change, unless this is not the case. If you know what the new owner has planned, you can let your clients know what those changes will be and when they will be put into place.

-You should also disclose if they will be seeing a change in price for the services they receive.

– Give your clients contact information if they have any questions about the transition.

-Let your clients know that you sincerely thank them for their business and know they will be in good hands with the new owners.

Ultimately, your announcement of the business sale should be given in a positive light, and with the lines of communication open. If you have a business that is very dependent on a client list, this transition will be important in the success of the sale.

Do you need help with writing an announcement for your clients or customers? Do you have questions related to you specific type of business and what you would need to include in such an announcement? Leave us a comment or question here, and we will be happy to assist.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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When it’s time to sell your business, you need to consider a few points in order to fully prepare for one of the biggest business decisions you will make.

First and foremost, you will need to determine what your priorities will be in regards to your business sale. What are some non-negotiable sticking points that you will want in place before any discussions begin with a buyer? You will want to be upfront with these, make sure your business broker knows right off the bat where any lines in the sand need to be drawn. On the other hand, what aspects of a business transaction will you be willing to negotiate or be more flexible on? Be sure that this part of your game plan is firmly in place between you and your broker from the very start and you will be more likely to end up in a better position come closing.

Second, decide what type of deal you are prepared to make. Are you going to be a seller who requires all-cash up front, or would you be open to some kind of seller financing? A word to the wise in this economy, all-cash offers do exist, but are few and far between. If you really want to sell your business, seller financing is a much more realistic way to bring in buyers. Discuss this point with your business broker.

Third, are there any ties to the business that you would want to remain in place? Do you have a child or relative working in the business who wants to stay on as an employee even with a new owner? How long of training and/or consulting period are you willing to agree upon? These types of details should be handled at the beginning of your business sale journey instead of at the end, so be sure that your business broker knows these important details.

Lastly, (and probably foremost in your mind as a seller) what is the minimum price you are willing to take for your business? This is a problematic point for many sellers, as the actual selling price of your business isn’t necessarily what you would want it to be, it is what someone else is willing to pay for it. Before you get a number stuck in your mind, have a serious talk with your business broker about what a realistic asking price should be, and also where the line would be in negotiations about bottom line offers. Be wary of a broker who is willing to list your business for whatever price you want. If priced too high, your business will just sit on the market indefinitely. By having realistic and well thought out expectations on price, you will not only be more likely to sell, you will be much happier with the end result.

Are you a business seller who has questions about business sale priorities? Do you have your business listed at a price that doesn’t seem to be generating any action? Please leave a question or comment here, and we will be happy to assist you.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Small business owners are great at what they do. They own and operate a business that they have built into a success. When it comes time to put the business on the market, however, many small business owners make mistakes that will end up costing them a great deal of time, energy and money. How do you avoid these types of mistakes? Know what they are and how to avoid them. What follows is part two of a five part series that will help you avoid business seller blunders:

Choosing the Wrong Business Broker

The most successful business sales have something in common- a business broker (or brokers) that know what they’re doing. As a small business owner, you could potentially go out and find plenty of brokers who will list your business for whatever price you demand. The problem with this approach is simple. Your business is worth what someone is willing to pay for it, and a good broker will use market knowledge and a good dose of reality to price your business so that it will sell. Too often business owners will end up with a broker who will tell them anything they want to hear as long as they get the listing. This can become a major issue when your business is priced too high. It will sit on the market and you will wonder if your broker is doing anything to get your business sold.

It can be a hard pill to swallow if your business won’t sell for what you’d like to get for it, but an honest broker will tell you if your desired price is unreasonable or not. A goods broker will also tell you if there are any minor tweaks or fixes you can do to get top dollar for your business.

Another common issue is time. A broker who will let an owner list their business for a completely outrageous price will also likely give a very unreasonable time table for the close of the transaction. The average time it takes to get a business from listing to closing is 9 months. Do businesses sell faster than the average? Sure, but if a broker is giving you any kind of guarantee on a short time frame to closing, you should be suspicious.

The key here is to choose your broker wisely. Ask good questions like: How many businesses have you closed in the last 12 months? What do you think is a realistic asking price for my business and why? How long will it take to sell my business? A great broker will have great, honest answers. A so-so broker won’t.

Have you had a terrible business broker experience? Please leave us a comment or question here, and we will be happy to show you how our services are above and beyond the rest.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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Small business owners are great at what they do. They own and operate a business that they have built into a success. When it comes time to put the business on the market, however, many small business owners make mistakes that will end up costing them a great deal of time, energy and money. How do you avoid these types of mistakes? Know what they are and how to avoid them. What follows is part one of a five part series that will help you avoid business seller blunders:

Procrastination and Business Life without an Exit Plan

If you want to sell your business the first thing you need to understand about the small business market is that business sales are not instantaneous. The average time that it takes to sell a business can vary greatly depending on the business sector, but a typical time line from listing to closing can be around 9 months to a year.

What this means for you is that you will need to prepare and plan way ahead of time if you would like your business to sell before a certain date or event. It is also important to remember that there is no guarantee that your business will sell by your goal date, but you will greatly improve your chances if you are ready.

A long-term plan for the ultimate sale of your business should technically start the day you open your doors. No one lives forever, and at some point you will need to deal with the end of your relationship as the owner of your business. If you have not been planning for this since day one, it is not too late to start.

Keep your records up to date and in a format that can be analyzed by a potential buyer (A huge box of crumpled receipts will not work!). Make sure all of your financial records, business history, and sales information is easily at hand if needed (If the right buyer walked into your life tomorrow, do you really want to have to tell them that you have no idea where your past three years of tax returns have gone?).

With every successful business transaction, there is a window of opportunity that you will not want to miss. The perfect buyer might be ready to buy your business two weeks from now or 12 months from now. The key to success is to be ready and have a plan in place.

Are you a small business owner who hasn’t given much thought to an exit strategy? Do you have additional question about how to make your business ready for an eventual sale? Leave us a comment or question here, and we will get your questions answered.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

No Comments »

Small business owners are great at what they do. They own and operate a business that they have built into a success. When it comes time to put the business on the market, however, many small business owners make mistakes that will end up costing them a great deal of time, energy and money. How do you avoid these types of mistakes? Know what they are and how to avoid them. What follows is part one of a five part series that will help you avoid business seller blunders:

Procrastination and Business Life without an Exit Plan

If you want to sell your business the first thing you need to understand about the small business market is that business sales are not instantaneous. The average time that it takes to sell a business can vary greatly depending on the business sector, but a typical time line from listing to closing can be around 9 months to a year.

What this means for you is that you will need to prepare and plan way ahead of time if you would like your business to sell before a certain date or event. It is also important to remember that there is no guarantee that your business will sell by your goal date, but you will greatly improve your chances if you are ready.

A long-term plan for the ultimate sale of your business should technically start the day you open your doors. No one lives forever, and at some point you will need to deal with the end of your relationship as the owner of your business. If you have not been planning for this since day one, it is not too late to start.

Keep your records up to date and in a format that can be analyzed by a potential buyer (A huge box of crumpled receipts will not work!). Make sure all of your financial records, business history, and sales information is easily at hand if needed (If the right buyer walked into your life tomorrow, do you really want to have to tell them that you have no idea where your past three years of tax returns have gone?).

With every successful business transaction, there is a window of opportunity that you will not want to miss. The perfect buyer might be ready to buy your business two weeks from now or 12 months from now. The key to success is to be ready and have a plan in place.

Are you a small business owner who hasn’t given much thought to an exit strategy? Do you have additional question about how to make your business ready for an eventual sale? Leave us a comment or question here, and we will get your questions answered.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

No Comments »

If you are putting your business on the market, you should realize that at any given time there are a lot of other businesses for sale. What will make your business stand out in the crowd? A lot of that is up to you.

If you are a serious business seller, there are a few questions you should be prepared to answer.

(A caveat here, if you are answering any question from a prospective buyer, honesty is the best policy. Someone who makes an offer on your business will get a due diligence period before the close of the sale to go over everything in your business with a fine-toothed comb. Any deception found during this period will likely kill the deal, and even if it doesn’t, it will breed distrust between you and the buyer that will have to be endured for the duration of the transaction as well as the duration of any training and/or consulting period.)

Question #1: What do you do to grow your company?

A good business owner is never content with just the status quo. A great way to help a prospective buyer decide on your business instead of the competition across town is to tell them what you do to keep the business growing.

Question #2: What do you do to stay ahead of the competition?

Buyers want to know that they will have a fighting chance against your competition from the moment the business changes hands, so let them know the strategies you have put in place to stay competitive in your market.

Question #3: If you suddenly had an extra $100,000, what would you do with it?

This question is all about showing that you are and have been a business owner with a vision for the future of your business, a future that a new owner will get to embrace. Answer this question by highlighting the things you would love to do, but have not had the time or resources to accomplish yet.

Are you a prospective buyer who has asked any or all of these questions? Are you a seller who has questions about how best to answer questions like these? Leave us a comment or question here and we look forward to assisting you with your business transaction needs.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

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