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business brokers

Crafting a Winning Negotiation Strategy for Selling Your Business

by | Sep 9, 2022 | Sell a Business, Selling a business

When you begin to negotiate the sale of the business, you will be much better off if you have developed a personal plan and have prioritized which items in the deal are the most important to you and which items you can compromise on and still accomplish your objectives.

  • Prioritize which items are most important in the sale. In every business sale there is negotiation where the buyer and seller have some give and take
  • Understand which things are important
  • Understand which things are not as important and where you can compromise and still get the desired results
  • Make sure to analyze what the post-sale looks like. Will you have enough money, what you will do with your time?

Small Business Seller’s Wish List

by | Sep 9, 2022 | Business, Sell, Selling a business

Today we are offering a wish list for a typical seller of a small business. Entrepreneurs who are selling their companies, as well as those looking to purchase, generally agree on what would make the process more seamless overall.

What the seller wants:

  • A qualified buyer – This not only means someone with the financial resources to meet a down payment and secure financing, it also describes someone with experience owning or managing a business — perhaps with some knowledge of the industry itself. A qualified buyer more than likely has established ties to the geographical area and if married or in a domestic relationship, has the support of his partner.
  • An appropriate offer – A seller appreciates an offer that is solid, reasonable and timely. Sellers expect contingencies to be a part of the offer, but also anticipate these to be realistic. One of the most common contingencies is a lease transfer with equitable terms for the buyer.
  • A practical due diligence phase – Sellers are pleased to answer questions and share pertinent data during the due diligence phase; however, buyers should take care not to pose queries or make statements that may be perceived as an insult to the seller. Common sense should dictate how the buyer should best introduce discussions on past decisions the seller made or how the business is run on a daily basis. Buyers should prepare their due diligence requests in writing and as soon as possible after the offer has been accepted.
  • A smooth closing – The closing should be a time of celebration for both parties, not a time for second-guessing, bickering or hesitation. Hiring a closing attorney experienced in the business transfer process helps immensely. By the time everyone is seated at the closing table, all questions should have been answered, all pre-closing paperwork completed and the buyer and seller should be confident this is a win-win situation for everyone involved.
  • An efficient transition – Most sellers, particularly those who created the business from the ground up, truly want to see the business continue to grow and prosper. Sellers want their buyers to be successful, and most will work hard to ensure the buyer is completely comfortable with all facets of the business during the training period that begins after the closing. This transition phase often involves introducing the new owner to suppliers and customers and showing the buyer everything related to running the business, from how to operate office equipment to the best way to manage employees’ schedules.

As a business broker, I have most enjoyed working with buyers and sellers who are forthright, reasonable and agreeable. Having realistic expectations on both sides and keeping a professional and positive attitude throughout the business transfer process goes a long way toward reaching a successful closing.

How Murphy Brokers Help You Sell Your Business Step by Step

by | Sep 9, 2022 | Sell a Business, Selling, Selling a business

Anyone selling a business should be considering the elements of the sales process. Business brokers are invaluable in each of these considerations:

Think It Through – Know What You Want
Do you want to retire completely or continue to have a hand or profit in the business? Do you want to move or stay where you live? Surprisingly, some people are not clear on these basic aims. Business brokers can help you refine these goals and the ways to achieve them.

Know What You Are Offering and Why You Are Selling
Is the business growing or declining? Is the competition getting tougher? Are the facilities and equipment in good working order or are they approaching the end of their useful commercial lives. Does the business need an infusion of capital to be profitable? Are most of your customers there just because of you (goodwill)? Are you tired of the rat race or are you ready to embrace a new chapter in life? Professional business brokers know how to express each of these circumstances to your greatest benefit.

Prepare Your Records – Orderly and Understandable
If you are trying to sell your business, you have a duty to provide honest information to your potential buyer. You make the job of your business brokers (and the sale of your business) easier if your financials, net worth statements, contracts, employment procedures, etc. are organized in such a way that the reviewer can discern clear information without having to conduct overly consuming research. Your professional may choose to reorganize your information (truthfully, of course) to your greatest benefit. Easily discernible records vastly assist in this process.

The Two Big Questions – Price and Marketing
The biggest concerns of the business seller will always be, “How much can I get?” and “How and to whom should I try to sell?” Murphy Business Brokers are the consummate experts in these areas. They work for you. Their job is to maximize what you get out of the deal and to let you know, straight up, if you have unreasonable expectations. They know where to look for customers, how to package your deal and how to advertise. Will public knowledge of a pending sale hurt the business and the chance for a sale?

Professional business brokers study and are experienced in all of these situations. It’s what they do. They optimize your benefit in terms of both asset return and expedience of sale.