Selling? The Questions Your Broker Should Be Asking Buyers

Posted in Business Broker Why & How, Sellers Articles

Published October 21, 2021

If you are ready to sell your business, then you might already know the importance of confidentiality during a business sale (if you don’t, read this now).

 

Keeping the for-sale status of your business as need-to-know-only information will be pivotal to a successful sale, and the best person to help you maintain confidentiality is an experienced and qualified business broker.

 

Notice that we said experienced and qualified. Like any industry there are brokers who know what they’re doing and those who could care less. You don’t want the latter on your team. You don’t want a broker who responds to every form or email inquiry about your business with an automatic nondisclosure agreement (NDA) – without any idea of who the person is that’s signing it. Allowing dozens and dozens of NDAs on your business opens you up to a myriad of problems.

 

 

A prospective buyer should be answering some very important questions before they’re just handed the NDA. If anyone who tries can get access to your business information, the likelihood of maintaining confidentiality (as well as the likelihood of finding the right buyer) will probably be small.

 

The initial vetting of prospective buyers is critically important, and if your broker knows what they’re doing they will be asking questions like these:

 

Do they have any practical experience with a business like yours?

You’ve worked hard to make your business what it is today, so you aren’t likely to hand the keys to someone who is destined to immediately drive your business into the ground. Potential buyers need to have some sort of practical experience, training or education in your industry so they don’t have to add learning an entirely new industry to the already steep learning curve of taking over an existing business. This is also very important if you lease your business location, as a commercial landlord is unlikely to transfer a lease to someone who would have no idea what they’re doing. It’s a safer bet for the landlord to have you stay on as the owner and keep paying the rent.

 

Do they have the financial means to actually buy your business?

The business market is full of buyers who think they can afford businesses they definitely can’t – incorrectly assuming they will be able to finance 80-90% of a sale. In most business deals where financing is involved – be it SBA loans, seller financing or a more traditional loan – a buyer will need to come to the table with a sizeable down payment. A good broker will have a very serious discussion with a prospective buyer about how much cash they actually have available to buy a business, how much financing they would actually be able to get and then only disclose to that buyer businesses they can afford.

 

Is this buyer who they say they are?

One of the ways confidentiality can be breached is by letting the wrong person sign the NDA for your business. Think a current or former employee who is looking to confirm a rumor or a competitor looking to move in on your niche. Your broker should ask you to come up with a list of people who can’t know the business is for sale, and then verify someone’s identity before handing them the NDA to sign. Good brokers ask a lot of questions, require some personally identifying information and then wait to verify that information before disclosing your business.

 

The point here is in order to reach a closing table successfully, you need to make sure you have the right help. Ask your broker what they do to vet potential buyers. Are they asking questions? Or do they disclose to anyone who asks?

 

Are you getting ready to sell your business and want to know more about why confidentiality is important? Would you like to know more about our process to vet buyers? Ask us! Please feel free to leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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Why It’s Not Worth It To “Win”

Posted in Buyers Articles, Sellers Articles

Published October 18, 2021

Business deals don’t just have a lot of moving parts, they have a lot of people. People with a lot to lose and people with a lot to gain. People who do this kind of thing for a living and are therefore unbothered by potential issues and people who’ve never bought or sold a business who think every small issue is a disaster. People who have to write very big checks and the people who are counting on those checks.

 

In any situation where you combine a lot of people and relatively high monetary stakes – drama is inevitable. There has probably never been a business transaction where everything was smooth and no one got upset.

 

 

Here’s why we bring this up. People who are going to buy a business and people who already own one are a tough bunch. You could call it type-A personality. You have to be strong, resilient, willing to make decisions and willing to take risks to be a successful entrepreneur. This personality, however, can be a bit of an issue when a business is changing hands.

 

Why? No ONE person can “win” in a business transaction.

 

The contract used for the sale of a business will end up being a very carefully crafted and heavily negotiated document. Heavily negotiated because businesses are inherently complex, and as such there are a lot of things to discuss and then decide on. How much is the buyer going to pay? Will there be financing of some sort? How will the lease be transferred? How will the licenses be transferred? What are the time frame and responsibilities for both parties during the training period? How long will the seller let the buyer have for due diligence? This list goes on and on.

 

The reality that essentially everything needs to not only be discussed but agreed upon as well means that neither side is going to get everything they want, exactly as they want it. Everyone, EVERYONE in the deal is going to have to make a few compromises if they want to get a deal done.

 

What this means for you if you’re a buyer or a seller is you can’t die on your sword every time something isn’t going your way. You can’t be petty about small things because you’re frustrated about something that has happened in the weeks or months that it takes to put a deal together. It means you can’t be petulant and difficult just because you feel like it.

 

At this point you’re probably saying “I’d never do that” – right? You might.

 

When a business changes hands, so does a lot of money. It’s a business that is someone’s blood, sweat and tears – and is getting handed to a complete stranger. The entire process can be long and incredibly stressful. It will be very hard for both sides of the table to always remain objective and not feel personally challenged during many parts of the process. You have to go into this knowing that your buttons will be pushed, your stress might get the better of you and your feelings might get hurt.

 

When that inevitably happens, don’t do this. Don’t make everyone change the time and place for a meeting last minute just because you want to be difficult on purpose. Don’t drag your feet with documentation that the other side has requested just because you think their questions are annoying. Although mildly entertaining for you in the moment, petty nonsense like this only wastes your own time and puts your own deal in jeopardy.

 

Power plays to “win” will do nothing but aggravate everyone in the deal – a deal that’s hard enough already and doesn’t need the additional drama. Go into your deal knowing that this process will be challenging, but worth it if you can remain patient.

 

Have you been in a business transaction where emotions got the better of someone and have an experience to share? Would you like to know more about the challenging parts of a business transaction? Leave any questions or comments, we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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Saving Yourself From A Nightmare – How To Get Ready For Due Diligence

Posted in Sellers Articles

Published October 14, 2021

Selling your business can be tough and time consuming. In addition to your day-to-day responsibilities as a business owner you have to be available for conference calls and meetings with brokers and potential buyers, you have to host on-site tours, you have to train the new owner and most importantly you have to provide the information and documentation a buyer requests during due diligence.

 

This last part – the documentation – can become a massive issue if you as a seller aren’t ready with what a buyer will probably ask for long before they actually ask.

 

 

Here’s why. Once you’ve accepted an offer from a buyer the due diligence period can begin (where a buyer typically gets a couple of weeks to go through your business records and decide if they want to continue with the purchase) – but it only officially begins once you’ve supplied a buyer with the information they’ve requested. Your business is essentially off the market during this time, so prolonging the time before due diligence starts by being unprepared on your end can keep your business away from the eyes of other potential buyers should this deal fall through.

 

This part of a business transaction exemplifies the saying “an ounce of preparation is worth a pound of cure” because you don’t want to be scrambling to assemble lists of expenses, months of payroll, multiple years of tax returns, copies of business licenses and permits, leases for your business location, registration information for equipment and/or vehicles, dates of purchase for equipment or inventory, leases or purchase documentation for company vehicles, client contracts, vendor contracts, lists of assets, multiple months of inventory records, employee files – all while the pressure of a due diligence timeline hangs over your head. It can be a maddening and stress-fueled nightmare if you aren’t ready.

 

The best thing you can do for your sanity, your hopes of reaching a closing table and your relationship with potential buyers is be ready.

 

Talk to your business broker about what a buyer is going to want to see – then get all of that documentation ready. Create files that can be shared, collect copies of documentation and make sure your financial records are easy to read and decipher. If your books are a mess your broker might recommend having a CPA who specializes in business transactions put your financial records together in a way that will make sense to buyers.

 

The message here is it won’t be good for you or your hopes of successfully selling your business if you’re trying to do ten years of books in three days. Get ready first.

 

Is selling your business something you’re considering in the near future? Do your business records consist of hundreds of unorganized pieces of paper currently shoved in a big box under your desk? Would you like to know more about what potential buyers are going to want to see? Feel free to leave any questions or comments and we would be happy to help. 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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Selling Your Business? Why You Should Keep Your Employees In The Dark

Posted in Sellers Articles

Published October 7, 2021

 

We get it. When you have employees, it can be hard to see them as just employees. They’re trusted colleagues who may have been working with you for a long time.

 

When it’s time to list your business for sale, it can be tempting to keep everyone in the loop. They should know that the business is potentially changing hands in the near future, right?

 

Unfortunately, no. Here’s why:

 

No one likes change. Particularly when that change could upset or derail someone’s paycheck or career plans. Employees who find out their place of employment is for sale invariably panic and a good number of them quit before a sale even happens. Think an entire kitchen staff including the head chef leaving en masse. Or an entire salon staff walking out and taking their regular clientele with them.

 

A huge staffing issue like this, at a time when prospective buyers will be scrutinizing your business and it’s sustainability will obviously kill any potential deals. It can cause massive issues for your bottom line and has tanked businesses completely before they got anywhere near a closing table.

 

Don’t do this to yourself, your business and your chances of successfully reaching a closing table. You have to keep your employees in the dark about the for-sale status of the business until after closing. 

 

What about someone pivotal to the business, like a head chef or manager? Can’t I tell them what’s happening?

 

It depends. There are some instances where a key employee can be in the loop, but for the most part you need to keep anyone who is on your payroll out of the business transaction itself. We realize that it can feel like you’re deceiving the people who trust you – but what you’re actually doing is protecting the integrity of the place where they work. Keeping the business in good standing will keep them employed, and employees who are good at their jobs have little to worry about if they continue to be good employees under new ownership. No one wants to take over a successful business and toss out the people who make that business successful.

 

Talk to your business broker about the employees you have, the roles they play and whether or not you’d like some of them to know about the sale before it happens. Your broker will be able to help you decide if it’s worth the risk to your business to let some of your staff know what’s going on. In almost all cases, the answer will likely be that it’s better if no one knows.

 

Have you considered selling your business but are concerned about the future of your employees after a sale? Do you have questions about what types of employees should be kept in the loop? Feel free to leave any questions or comments and we would be happy to help.

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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Surviving Cold Feet: Advice for Buyers and Sellers

Posted in Buyers Articles, Sellers Articles

Published August 2, 2021

A business changing hands is a big deal. If you’re buying a business it means you have to write a very large check and you’ve just bought yourself a new job – one where success may not be a sure thing. If you’re selling your business, then you’re about to hand your baby – your blood, sweat and tears – to a complete stranger. You’re also about to be out of a job. 

 

These are some high stakes, and as such emotions can run really high in a business transaction, particularly as you approach the closing table. Guess what? It will probably be very hard to keep from feeling overwhelmed and taking things personally. 

 

Here’s the key to success. As difficult as it might be, don’t take things personally and understand that a decent case of cold feet is completely normal.

 

 

Perfectly great business deals fall apart on a regular basis because as the end of the transaction approaches one or more of the parties involved gets a serious case of cold feet, panics and kills their own deal. While there are (on very rare occasions) catastrophic issues that will derail a deal at the end, for the most part a deal that dies near the closing date dies for no good reason at all. It typically comes down to nothing more than cold feet and hurt feelings. 

 

With lots of money changing hands and lots of decisions needing to be made – it can be easy to get overwhelmed and decide that it would be far easier to walk away. The stress of a small business transaction can cause even the most seasoned entrepreneur to crack. Understand that the high stress, raw emotions and second-guessing are coming and that it’s a totally normal way to feel as you approach the end of a business transaction. 

 

Here’s a couple of tips to help you make it to the closing table: 

 

The old adage that it’s best to sleep on a big decision exists for a reason. Knee jerk reactions are rarely productive, so if you’re starting to feel panicked and like maybe this whole transaction isn’t for you – take a breath and step away from it for a minute. Talk to your business broker about your concerns. They’ve been down this road many times, and can help you see the forest through the trees.

 

No business transactions happen overnight, so the months and weeks that have led up to this point have given you all the information you need to make an intelligent decision. If yesterday you were fine with the deal and overnight you’ve decided it’s a terrible idea – you probably need to go back and think about all the reasons why you made this decision in the first place. 

 

Have patience with yourself. No matter which side you’re on, this is a big decision and it’s completely normal to feel a little overwhelmed. What you shouldn’t do, however, is let that overwhelm cause you to kill a perfectly good deal – one that would have met the goals that you’ve been trying to meet for months. 

 

Are you nervous about buying a business? Do you have questions about what selling your business might be like? Ask us! Leave any questions or comments and we would be happy to help!

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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Good/Bad? What Was The Pandemic Like For The Small Business Market?

Posted in Buyers Articles, Sellers Articles

Published May 31, 2021

The pandemic was bad, but how bad was it for the small business market?

 

Well, it depends. It’s been an unprecedented year to say the least. Some businesses couldn’t weather the storm and had to close their doors. Those businesses made all the headlines, but outside of the spotlight many small businesses survived. Sure, some of the businesses who were able to remain open were forced to lay off workers, make cuts and the like – but small businesses and the small business market (perhaps surprisingly) never stopped.

 

 

Business owners who were able to pivot – say a restaurant who switched to take out and delivery options, or a manufacturer who was able to switch to producing hand sanitizer – these businesses did really well. So did businesses based in the new “essential” category. The ingenuity of the small and growing business showed itself in the creativity that allowed businesses to not only remain open – but thrive.

 

On the other side, people forced from their jobs and relegated to staring at the walls of their homes were also forced to evaluate what they wanted out of life. For a lot of them, what they want is to be their own boss – and as such calls from potential buyers never stopped.

 

What does the last year of the small business market mean for you?

 

The good news is if your business weathered the last year and you’re thinking about selling – there are absolutely buyers in the market. The pandemic-driven future entrepreneurs are looking to buy, and the fact that your business remained open is an enormous selling point. Talk to a business broker today about what the market currently looks like for a business like yours and what businesses in your industry are currently selling for.

 

If you fall into that category of budding entrepreneurs who are going to take the hard lessons from the last year and turn them into a more fulfilling life – there is never a better time than now. Sure, there are multi-million dollar businesses on the market – but there are also lots of very affordable business opportunities out there. Have a conversation with an experienced and qualified business broker about your goals for ownership, the capital you have available and the practical experience you have. You might be surprised, not only with the number of business opportunities available to you but also by what types of businesses will check all the boxes for your goals.

 

Were you thinking about selling your business before the spring of 2020 and now think the time might be right to restart those plans? Are you considering making the jump to business ownership now that the pandemic is winding down? Do you have questions about the small business market in 2021? Ask us! Leave any comments or questions and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

No Comments »



Patience With The Deal And Patience With Yourself – The Successful Business Seller

Posted in Sellers Articles

Published May 13, 2021

 

Selling your business is a monumental decision, one that carries with it some very big (and often very unexpected) emotions. While these emotions are completely normal, they can (if allowed to do so) completely derail a great business sale – so here’s how to keep that from happening: 

 

Be patient with the deal.

 

It can take months and months to find the right buyer, and then once you do the transaction itself takes time. Lots and lots of time. It can be easy to get lost in your post-sale-life daydreams and want to push the deal to go faster – but that isn’t a good idea. Your buyer is about to write a very big check, and they will absolutely be nervous. That nervous buyer is going to want to go over your books multiple times, rework the contract, renegotiate with the commercial landlord, have their attorney and CPA look at everything, rework the contract again – it’s a process that can be frustratingly long for a seller. Here’s the thing. You can’t force this process to move at the speed you’re ready for. It needs to go at the buyer’s pace because you don’t want their nerves to be coupled with feeling rushed – causing a perfectly good deal to fall apart. Patience with the process and patience with your buyer will serve you far better than trying to ram the deal through. 

 

Be patient with yourself.

 

Your business, even if you’re burned out and can’t wait to sell, is your baby. There’s a lot of blood, sweat and tears invested. You’re excited for the post-sale future, but it can be surprisingly hard to hand over those keys when the time comes. Be ready for this. Buyers are going to comb through all of the work you’ve ever done and look for problems, then they will try to leverage those problems for a better price. While a completely normal part of the business transaction process, it can be very difficult for a seller to keep from feeling personally insulted. Remember that you absolutely must stay objective, no matter how hard it is. If you were the buyer in this situation, you would be doing the same things. Mentally preparing to have both things happen – your work criticized and then giving your business to a stranger – will help you step back from the brink of killing your own deal when those big emotions show up.  

 

Get ready for dealing with the emotions that go hand in hand with such a huge life change. Take a breath, be patient with the transaction process and give yourself some grace. There are more exciting things ahead!

 

Have you considered selling your business, but aren’t sure you could walk away? Do you have questions about how long the transaction process takes for a business like yours? Ask us! Leave any questions or comments and we would be happy to help. 

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

No Comments »



Have A Favorite Real Estate Agent? Why You Shouldn’t Use Them For Your Business Deal

Posted in Buyers Articles, Sellers Articles

Published April 26, 2021

 

This one happens all the time. We get a call from a real estate agent who is inquiring about one of the businesses we have listed on behalf of a buyer, or is looking for potential buyers for a business one of their clients wants to sell. Perhaps they are a trusted agent for a client, and the client asked that they inquire on their behalf. We even have potential buyers and sellers call and request that we use their real estate agent for their part of the transaction. 

 

We tell them how business transactions work. A real estate agent who refers a client to us will get a referral fee when the deal closes, all they have to do is get us the client’s contact info.

 

Sometimes an agent refuses to divulge their client’s information, demanding instead that we work with them on the deal. We refuse, so the agent moves on to a different broker to see if they can talk someone into working with them. Their clients don’t get access to business information or potential buyers, and are likely unaware that any of this is going on.

 

Why won’t business brokers work with real estate agents? Why do they require a referral of the clients instead?

 

It’s very simple. Real estate agents are very good at what they do – they sell property and homes. What they are not good at and likely know little to nothing about is selling businesses. You can liken the difference between a business broker and a real estate agent to the difference between a plastic surgeon and your general family physician. You would probably be very uncomfortable having your family doctor do reconstructive facial surgery – along the same lines a business broker specializes in the buying and selling of businesses. We would never try to help someone buy a house, it’s just not what we do.

 

What can happen if a real estate agent tries to help you buy or sell a business? Since they don’t know the ins and outs of the business transaction process, there is a good chance you will never see a closing table.

 

If you are a seller, a real estate agent will likely treat your business listing like a listing for a house. They will take pictures, gather some cursory financial information and then post this information on the MLS listing system. This is a complete disaster in the making. The most important part of selling an existing business is maintaining confidentiality. Without confidentiality, you stand to lose customers, employees, vendors and money. The only people who should know that your business is for sale are those who have signed the appropriate non-disclosure documents – not anyone with an internet connection who can search the MLS. A business broker knows how to confidentiality market your business, and they are also well-versed in negotiating leases, licensing and permitting concerns and will have relationships with other brokers and buyers who are currently in the market looking for a business like yours.

 

If you are a buyer, a real estate agent isn’t going to have access to any business listing information without talking a broker into letting them have it (which isn’t likely to happen). Many real estate agents also try to fill out the non-disclosure forms themselves, pretending to be the buyer, but all this does is garner mistrust with any sellers who will then feel like they’ve been duped when the truth is later revealed.

 

We understand your loyalty to your real estate agent – we have many friends in the real estate industry and we have used their expertise for not only our home purchases but also the sales and purchases for our family members. You shouldn’t feel like your real estate agent gets the short end of the deal if they refer you to a business broker – they get paid for handing over information and doing nothing more. They are doing you and your future business transaction a great service by putting you in more capable hands.

 

If you are looking to buy or sell a business, feel free to ask your real estate agent if they have a business broker they would recommend. Just be wary if your agent tries to talk you into letting them take the reins.

 

Have you tried to buy or sell a business using a real estate agent and have a story to share? Do you have more questions about the referral process? Ask us! Please feel free to leave any comments or questions.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

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Picking A Broker? Red Flags: What To Watch Out For

Posted in Business Broker Why & How, Buyers Articles, Sellers Articles

Published April 22, 2021

Whether you’re in the market to buy a business or have a business that you’re ready to sell – your best bet for success and reaching a closing table is hiring the right help. In the business transaction world that help is a business broker. 

 

What do business brokers do? They help sellers list their business for sale. They put together marketing packages and business listings and then add those businesses on listing platforms. They keep the confidentiality of the for-sale status of a business in place by vetting buyers and having qualified buyers sign the appropriate non-disclosure agreements. They coordinate conference calls and meetings between buyers and sellers and act as an incredibly important buffer in the negotiation process. They help put together offers and help solidify purchase contracts. They give advice throughout the process, as their experience with business transactions can be invaluable for avoiding common pitfalls that can cause deals to fall apart. They help sort out commercial leases with landlords and property managers. They assist with permitting and licensing requirements. They assist with obtaining financing options. They coordinate with immigration attorneys to obtain Visas for international clients. 

 

It’s a long list. A list you probably don’t want to tackle with someone who is terrible at their job. 

 

How can you tell if a broker is a good broker? You can watch out for red flags.

 

 

Does this business broker have no online presence at all, or a website where the last post was 7 years ago? 

 

The business transaction process, like most things, has gone digital in recent years – from electronic signatures to virtual walkthroughs and the like. If a broker can’t even maintain a basic digital presence, then they probably aren’t up to speed on other aspects of their job either. 

 

Do the listings for a particular broker have a ton of spelling errors or always seem to be incomplete/incorrect? 

 

The business transaction process requires a great deal of attention to detail. If a broker is willing to leave mistakes all over their listings, how careful are they with everything else? A listing and a marketing package are an important first impression of a business for buyers. If all you’re getting is some over-copied tax returns and 15 spelling errors, it might be time to find someone else. 

 

When you contact a broker, does it take them an enormous amount of time to respond?

 

You can’t expect a broker to always pick up your call or immediately respond (they should have other clients and a life outside of work) but you should be able to get in touch with them in a reasonable amount of time. If you have to wait a week for a response, you might need to find another broker. 

 

Does a broker claim to have proprietary formulas or methods that no one else in the business has? 

 

Well, there’s probably a reason for that. Occasionally brokers will claim to have some magic metric (for example – for pricing businesses) that no one else in the industry uses. Every business is unique, so a big part of becoming a successful business broker is understanding that every transaction will be different and each business will require a different approach. There isn’t a better mousetrap – there’s only those who can adapt the process to get a transaction done and those who can’t. 

 

The message here is you want qualified and experienced help – and you aren’t going to get that from someone who is careless with the most important parts of their job. Keep an eye out for red flags as you begin the business transaction process. 

 

Another good metric? Ask any potential broker how much of their business comes from referrals. Someone who does a good job is going to get a great deal of their future clients from the referrals of past happy ones. 

 

Are you looking for businesses to buy and want to know more about how a business broker can help you? Have you considered selling your business and want to know what our marketing packages look like in comparison to others in the industry? Ask us! Leave any questions or comments and we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

No Comments »



The Waiting Game: Why Sellers Need Patience

Posted in Sellers Articles

Published April 15, 2021

When we finally decide we are ready to sell our business, we’re ready now. We’re ready for the next chapter. We can already see ourselves in the next phase of life – retired and playing golf, sitting on a beach somewhere or onto our next entrepreneurial project – whatever the daydream is.

 

There’s a big problem with the desire for now in the business marketplace. It can take a really, really long time to sell your business.

 

 

Sure, there are occasions where a business lists and sells relatively quickly, but this isn’t always the case. This usually occurs when it’s a seller’s market in general – as seems to be the case in 2021. That being said, even in a seller’s market it can take a while to get to a closing table.

 

Why? There are basically two reasons for this. Two reasons that will require you to have patience as a seller.

 

First, business transactions are complicated. There are contracts and leases to be negotiated, training that needs to occur, large amounts of money changing hands, time for attorneys to review documents, financing that needs to go through a process with lenders, licensing and permitting requirements, (for some transactions) Visas that need to be processed by consulates – the list goes on and on and on. Those layers of complication can hang up deals for days, weeks or months – even with very motivated parties on both sides. If you want to be a successful seller, then you need to be mentally prepared for your deal to get hung up somewhere (or multiple times) during the process.

 

Second, you have to wait for the right buyer. Every business is unique, and as such it takes a buyer with a set of goals that your business uniquely fills to make a deal happen. Depending on how niche your business is, licensing requirements for a new owner, your location, the physical abilities required to run your business, etc. it can take a bit of time for you and the right buyer to connect. In a typical year it can take somewhere around 9 to 12 months to get a deal from listing to closing – so you are going to need a large dose of patience if you want to see the process through. 

 

It can be tempting to list your business for sale and then take your foot off the gas because you are more than ready for the next phase of your life – but this is an enormous mistake. Your business needs to look the best it can when you are trying to attract the right buyer, and it can’t look it’s best if you’ve stopped trying. Have patience, keep a focus on growth and keep your numbers strong until you actually reach the closing table.  

 

Are you considering selling your business and want to know how long it’s currently taking to sell a business like yours? Would you like to know more about how to attract the right buyer? Ask us! Please feel free to leave any questions or comments, we would be happy to help.

 

 

 

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com
5111 Ocean Boulevard, Suite E
Siesta Key, FL 34242

www.InfinityBusinessBrokers.com

 

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Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com

9040 Town Center Parkway
Lakewood Ranch, FL 34202



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