If you are in the market to sell your business, you might feel that your business speaks for itself.
The financials, the location – they will tell buyers all they need to know if they are considering taking your place as the owner.
Guess what? Buyers are also taking a long hard look at you. Your actions will speak volumes about the way you run your business and what they can expect from you throughout the sale process. Here are three things you should try to do – to not only gain the trust of a potential buyer, but to put your business in the best possible light:
About everything. Sure, every business has a skeleton or two in the closet, but trying to hide or gloss-over these issues when in negotiations with a buyer will make you look like a liar in the end. During the due diligence process, buyers get a chance to dig into your business, so anything you try to keep from them will eventually come out. If you are honest about any issues right out of the gate, most buyers will be willing to deal with those issues. If you try to keep a buyer in the dark, the inevitable unveiling of any issues will probably kill your deal.
Don’t be a disorganized mess, even if you really are.
If organization isn’t really your thing, then you need to give yourself an organizational make-over before you get in front of buyers. Your business broker will be able to help you figure out what needs a good once-over, like your records. You want buyers to be able to read and understand your books, as your financial records are what a buyer uses to determine what they are willing to pay for your business. A big box of jumbled sales slips is not going to impress anyone.
If you tell your buyer you will meet them, show up and don’t cancel last minute. We see deals fall apart because sellers mentally check-out long before the closing table and start blowing off meetings and phone calls with potential buyers. If you are this cavalier with a buyer, then how cavalier have you been in your relationships with the community or vendors – relationships that a new owner is going to rely on? Show that you are a man (or woman) of your word, and you will be speaking volumes about the value of the reptation of your business.
Are you thinking about selling your business, but your records are a disorganized mess? Do you have more questions about what buyers are watching for? Please feel free to leave us a comment or question here, and we will be happy to help.
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Fort Myers, FL 33907