Posted on: 1 December 2017
So you've decided to sell you business and you want to make sure that there is plenty of buyer interest before giving in to an offer. Following are a few tips you can use to optimize buyer interest and increase your chances of selling it quickly:
Address Objections Beforehand
No matter how well your business is doing, you can expect potential buyers to have some objections that need to be addressed before they seriously consider purchasing the business. Instead of waiting for objections to come up and addressing them on the fly, work with your sales representative to create a list of objections to anticipate, and address them in writing so you're ready to respond if said objections are brought up during the negotiation process.
Carefully pour through your sales records, profit and loss reports, supply purchase orders, and customer accounts to see if there are any inconsistencies or areas of concern that should be addressed with potential buyers. You can then shed light and provide a deeper understanding about those inconsistencies in writing. When a prospective buyer communicates an objection, you'll be ready to address is quickly and efficiently which will give the buyer confidence in your knowledge and passion for the business.
Create a Target List of Buyers
Another way to improve your chances of selling your business quickly is to create a target list of buyers that you think would be interested in the business you're in. You can use the target list to identify interests and concerns that may come up, which will help you think more like a buyer. Determine what makes your business more valuable and less interesting to your target market and address each issue accordingly. Putting yourself in the buyer's shoes will allow you to figure out where problem areas are and give you an opportunity to fix those problem areas before putting your business on the market.
Invest in Business Valuation Services
Having your business professionally valuated should attract more buyers initially, and help ensure that you get top dollar for your business when it sells. A professional valuation will help you gather data about important aspects of your business that prospective buyers are likely to be interested in such as:
Equity Owned By Investors
Equipment and Inventory Specifics
Financial Statements and Tax Returns
Customer Acquisition Rates
The service provider you work with will use the information gained during the valuation process to identify a fair value amount for your business overall, which should coincide with your asking price.Share