It’s normal to have questions and concerns about the process. How will I know if I’m getting a good price? What if the buyer doesn’t keep his promises? Will I be able to find another job when it’s all over?
Don’t worry – we’re here to help address some of those major concerns and help you through the selling process. In this article, we’ll talk about how to deal with the fear of not getting a good price, the worry that the buyer might not follow through on their end, and what to do when you feel like you might be out of options.
Getting the Highest Possible Price
It’s no secret that every business owner wants to get the highest possible price for their business. After all, that’s what the asking price is for, right? However, it’s important to remember that the selling price is what the seller actually gets. The fair market value is the highest price the buyer is willing to pay and the lowest price the seller is willing to accept. So how do you make sure your business sells for as much as possible?
Educate yourself on what buyers are looking for these days. They’re more numbers-conscious than ever before, so be prepared to justify your asking price with solid evidence. Make sure your business is in good shape and ready to be sold. Buyers today are looking for a “sure thing”. Many are afraid to make the leap-of-faith necessary to make the final plunge. Be honest about your business – buyers don’t want surprises.
The buyer has interest in the future of the business, and believes that they should reap the benefits of their efforts. However, the price or value in their minds is based on what the seller has done with it in the past. Make sure you can highlight all your successes and paint a positive picture of the future for potential buyers.
Selling a business can be a complex process. Any issues, whether financial, operational, legal, or environmental, should be addressed and resolved prior to putting the business on the market. Hidden issues have sabotaged more sales than anything else. By taking the time to address any potential problems upfront, sellers can avoid last-minute surprises that could lower their asking price.
Many sellers mistakenly believe that they should start with a high price. They refuse to budge no matter what an interested buyer offers. However, this can actually scare away buyers and make it difficult to find a buyer who is willing to meet your asking price. A professional business broker can help you set a price that is reasonable and achievable. They can also help you while still leaving room for negotiation. By starting with a fair price, you ensure that you will get the best possible return on your investment.