Selling a Business- It’s about Time
Selling a Business is a process. Many factors go into a successful business sale. I am an experienced Business Broker working with business sellers and business buyers in both South Carolina and Florida.
Below is a description of the role time plays when selling a business. And how one should take the time to plan a business sale and understand if the timing is right when selling a business,
When selling a business, setting the right selling price is important, finding a qualified interested buyer is important, finding the right deal structure is important and in the background of all of this is TIME.
The money involved with selling a business is the engine that that drives the deal forward but inevitably time is the steering wheel that affects where and when the deal goes through.
What affect does time have on the selling a business process?
- Is it the right time for the business owner to sell his or her business? Are they ready financially and emotionally?
- Is it the right time to try to sell the business according to the economy. A few years back during the recession (or whatever you call it) was it the right time to sell a business when business lending was significantly down and sales and business performance were down?
- Is it the right time for a business buyer? Is it the right time in the business buyer’s life? In all my experiences most business buyers mostly, but not always, seem to fall in a certain age demographic of say 30-55 years old. So often someone under 30 may have the interest in buying a business yet may not have the financial means. A business buyer over 55 may have the financial means yet may not have the energy or perceived time horizon to engage in the long term decision. Or family situation can also affect timing. (That being said I did personally buy a business when over 55 years old). But the time needs to be right for the business buyer
- When selling a business, how much time is needed to sell a business. How much time will pass between the decision to sell, to signing documents at a business sale closing? I’ve sold a business that took 3 days to sell and sold another business that took 3 years. An often misunderstood part of selling a business is how much time is involved in selling a business. Yes it does happen sometimes when someone knocks on your door , offers to buy your business, and soon after a business sale occurs. But that scenario is definitely not the norm. Using a business broker is a decision that should strongly consider time.
- Most business owners I know have a full day handling their business. For many, this is an understatement. But generally most business owners are busy running and growing a business. How does a business owner find the time to add on the added responsibility of trying to sell their business. Selling a business involves putting together a marketing package, marketing, vetting prospective prospects, trying to maintain confidentiality, securing NDA’s, etc.. All this occurs before meeting with prospective buyer. Offers, Due Diligence handling, contracts, etc. are all elements that may occur after finding a buyer, and all of this requires time. (and a certain level of expertise)
- If the Buyer needs bank financing to buy a business- how long does it take to secure financing? If the Seller is offering to stay on during transition how much time is he/she willing to stay on for?
- More than likely the Seller will agree to a Non-Compete upon a successful business sale. How much time is the non-compete in effect for?
Is the time right for selling your business? Is the time right for you? Are you ready mentally and financially? As a business owner selling a business- do you have the time?, As a starting point take the time to seek some answers to these questions. You may not have the time but must make the time to properly analyze this very important decision.
Scott Messinger is a Professional Business Broker working with business owners looking to sell their South Carolina Business or Florida Business. Also working with business buyers throughout the South east USA, throughout the nation, and international business buyers as well.
Currently represent businesses for sale in Anderson South Carolina, Greenville South Carolina, Pendleton South Carolina, Pickens County, Jacksonville Florida as well as other areas of South Carolina and Florida.
For More information email Scott@GatewayBusinessAdvisors.com or call (864) 210-8226