If you are considering listing your business, you may have thoughts about how you think the process is going to go.

The version of your business sale that exists in your mind, however, is likely to be more fantasy than fact. You probably imagine that shortly after listing for what you consider a more than reasonable price multiple offers from motivated sellers will come pouring in – and a fierce bidding war will ensue. Within a month of this imaginary listing scenario you are drinking margaritas on the beach with the proceeds of your highly successful business transaction in hand.

Reality, unfortunately, will be nothing like this fantasy business sale.

If you are considering selling your business, one of the most important things you can do to have a successful transaction is to manage your expectations. Going into the selling process with a realistic attitude will mean that you are able to deal with issues as they arise and will be better equipped to negotiate with buyers. In this first article of our “Why No One Is Buying Your Business” series we will look at the biggest expectation hurdle for sellers – price.

Your business is your baby, and we get that. We’ve owned businesses too. You invest countless hours, what feels like endless streams of money and tons of energy into this enterprise – and then you have to put a number on all of that investment.

Most sellers who set their own price set it way too high. The reality of business sales is you aren’t going to get back every penny and every hour you’ve ever put in. Your business is going to sell for what a buyer is willing to pay for it – and that number will be related to the market, your current cash flow, the value of your inventory, etc.

If you are unfortunate enough to get an inexperienced broker or a broker who wants your listing with no intention of ever trying to sell it, you will likely be allowed to list your business for whatever you want. This is a huge mistake.

A business priced too high will languish on the market, and any buyer who takes a look will wonder about the credibility of a seller who would ask for such an unrealistic number.

Someone who is serious about selling their business will instead look for a broker who will help them put a realistic listing price in place – a price that can be backed up by the market and the numbers in the books. A fair listing price will bring the serious buyers in the door and give you a far better chance at reaching a closing table.

If you are serious about selling or are curious about what you might be able to get for your business, contact us and we can discuss a realistic listing price.

Join us for the second article in this series where we will discuss another big sales hurdle – purchase contract terms.

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

Unless you own an accounting firm, it’s likely that the record keeping and accounting parts of your business aren’t necessarily your daily top priority. You have a business to operate, employees to manage and inventory to sell.

However, if you are thinking about selling your business in the future – those record keeping and accounting skills will be paramount in getting you the biggest bang for your business investment.

How? Think about this point from a buyer’s perspective.

You are looking at two nearly identical businesses. They are in the same industry, in similar markets and locations and they generate the same amount of cash flow. The first business has immaculate records that stretch all the way back to the day they opened the doors – tax returns, P&L statements, inventory records, payroll records, the list goes on. When you as a buyer request records for this first business, they are already complete and organized and are handed over almost immediately.

For the second business, a request during due diligence for records gets you a poorly copied set of two years of tax returns and a box of receipts.

Remembering that these businesses are essentially the same in terms of cash flow, which one are you going to be willing to buy and which one will you pay more money for? The first business, right?

Why? You know what you’re getting. The history of the business, the current numbers, the contracts and leases – everything is right there for you to look at. There’s no guessing or lack of transparency. It’s all there on paper in black and white.

If this scenario has you instantly picturing the dusty box of receipts shoved under your desk – all is not lost. Getting your books in order may be challenging, but the return on the investment of time will likely be substantial. You want buyers to be looking at how well your business is doing, not wondering how someone so disorganized keeps the doors open.

If you need help, help is available. Your business broker can guide you and refer you to a CPA who specializes in making records useful during a business transaction. All you need to do is ask and be up-front about the condition your records are actually in.

Are you panicking about the box of disaster under your desk? Would you like to know what types of records business buyers are going to want to see? Please contact us at Infinity Business Brokers today and we would be happy to help.

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com

By Guest Contributor Jessica Trippler – www.BrinkResults.com

As we celebrate our nation’s independence, many working professionals wish they could muster the courage of our forefathers to make their own Declaration of Independence. Poorly managed employees have a valid list of grievances. Could your management style be stifling your company’s productivity?

Consider these common workplace grievances and learn how to foster independence which will strengthen employee morale while boosting your bottom line.

1. “I don’t know what’s expected.” Lazy management is not independence. You might think you are giving your employees freedom, but an approach which is too “hands off” will make them feel anxious. Give clear direction. Employees can’t hit a moving target and will grow weary of poorly defined or frequently changing goals. Don’t leave your people guessing about whether they’re meeting expectations.

2. “I’m sick of being micromanaged.” Mentor, don’t hover. Just like “helicopter parents,” managers who hover too closely will stifle creativity. Make yourself available to answer questions and check in regularly, but don’t breathe down your employees’ necks. Give them space to brainstorm and experiment. Employees will grow more confident and competent when they are given the freedom to explore. Demonstrate trust and expect failures. It’s all part of the innovation process.

3. “I don’t feel appreciated.” People need to feel a sense of purpose. This may be lacking in a workplace atmosphere so “free” that progress is never measured or rewarded. A lack of manager awareness means poor work and productivity alike will go unnoticed. Your employees will begin to wonder if their accomplishments even matter. Be deliberate about recognizing achievements.

4. “My ideas aren’t valued.” Don’t override your team’s decisions without proper consideration. The reason you hired these professionals is because they bring a diverse and valuable collection of competencies. If decisions are routinely vetoed by management, employees will stop innovating. Listen to and carefully evaluate new ideas. If you must veto, offer solid reasoning. You lose your employees’ respect when you presumptively dismiss their proposals.

5. “I’m always the last to know.” The workplace is a fast-changing environment. If managers don’t prioritize communication, they will cultivate disgruntled workers. Share information as quickly and authentically as possible. Schedule regular meetings so communication isn’t shoved aside by deadlines. Nothing is more frustrating than feeling you’ve wasted time and energy pursuing a defunct goal. Managers who are candid and communicative will reap their employees’ respect.

6. “I’m treated like a number.” Get to know your employees as individuals. Call them by name. Find out what makes them tick. You never want to overstep personal boundaries, but a little interest goes a long way in building trust. Share your own relevant career experiences and listen to employees’ ideas on how to improve the workplace. By establishing a safe environment for personal expression, you will strengthen employee satisfaction.

Managing right is the key to fostering workplace independence. Brink Results can help through targeted training, workshops and behavioral assessments like ProScan® , which empowers management to capitalize on employees’ strengths and motivations. This creates an environment which reduces stress while increasing morale.

Your employees will thrive in a secure, communicative workplace where independence is supported through clear direction, regular feedback and recognition of achievements.

Jessica Trippler

Director of Sales
Hire Right. Train Right. Manage Right.
Brink Results, LLC
10060 Amberwood Road
Fort Myers, FL 33913
Office: 239.334.1050 Ext. 204
Cell: 201.563.2243
Fax: 239.288.2493
www.BrinkResults.com

Michael Monnot

941.518.7138
Mike@infinitybusinessbrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907

https://infinitybusinessbrokers.com