Selling your business is tough. It’s complicated, it’s stressful – and you have to deal with business buyers who want everything now and to pay you as little as possible. Sometimes it’s not fun.

One part of selling your business that you may not have considered? Flexibility.

What do we mean by that?

When you are the owner of a business, you are used to running the show and having control over the day-to-day. When you sell your business, you have to let other people – like buyers and brokers – into your realm. It can be frustrating, but by having a flexible mentality about the selling process you can get yourself to a closing table.

What do you need to be flexible about?

You are going to have to be flexible about conference call times, meetings and site visits. Site visits particular, because to maintain confidentiality you will need to show your business either before or after business hours when your staff isn’t around.

You are going to need to be flexible on your selling price and on the terms within the purchase contract. Neither side is going to get everything they want, so a flexible attitude in regards to the negotiation process will help you immensely. Your listing price shouldn’t be your rock bottom number, so you should expect initial offers to be lower – in many cases much lower. Just look at any offer, no matter how low, as a jumping off point for negotiations.

You need to be flexible with the due diligence process, which occurs after you accept an initial purchase offer. During due diligence the buyer will be requesting information, lots of information. You will need to produce your tax returns, financial documentation, bank statements, contracts, leases, payroll records – the list goes on. It can be difficult at times to deal with what feels like constant requests and endless lists of questions you feel like you’ve already answered. Patience is key in this part of the process. Try to see due diligence through a buyer’s eyes. They are trying to turn over every stone because they are making a very big purchase and don’t want to be surprised.

You need to be flexible about closing dates and training periods. Any buyer who plans on success will need the previous owner of the business to show them the ropes. Most training periods are two weeks, but it can vary from transaction to transaction and you may end up consulting with the buyer of your business for longer than you think is necessary. It can also be difficult during the training period because the business is no longer yours and decisions are no longer yours to make. Just remember that you are providing for the legacy of your business and that the training period is only temporary.

The key to the successful sale of your business isn’t really your numbers or the pictures your broker takes – it’s you. A flexible and patient attitude will get you to a closing table faster than anything else, so mentally prepare yourself for the journey ahead.

Are you thinking about selling your business and want to know more about the process? Would you like to know more about training periods for buyers? Ask us! Leave questions or comments 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

www.InfinityBusinessBrokers.com