Are you looking to sell your business for top dollar? It’s more than just listing it online and accepting the first offer that rolls in. You have to prepare. Whether you want to sell your company now or years down the road, it’s important to know the proper steps to take and to familiarize yourself with the market and how it works. The last thing you want is to receive a poor payout for a business you built because you were unfamiliar with the market and how to properly price your business.
At VR New Haven, we see plenty of businesses for sale in CT. From business services firms to manufacturers and every industry in between, you name it, we can work with it. We also see many business owners making the same mistakes over and over. Whether it’s going into a negotiation blind or refusing to pre-qualify their buyers – selling a business in CT is easier said than done. Learning valuable tips and tricks from a top mergers and acquisitions broker will help you get the offer your business deserves.
That’s why our business broker team at VR New Haven has put together a list of tips that can help you learn how to sell a company effectively and successfully. Take a look and see how you can start preparing now.
Tip #1: Know Your Sale Date
When you decide to sell a company, the idea of receiving a multi-million-dollar payout may have you wanting to jump right into the selling process. You may receive a large offer quickly and want to take it immediately. However, this could severely limit your selling power in the future. In addition, any offer you receive early on could be exponentially less than an offer you could receive in the future.
Before jumping into the selling process, know the date on which you want to officially sell your company. This will give you a goal to work toward. During this time, focus on building the reputation and brand of your business, as well as its operational efficiencies. This will help increase its market value when you do decide to sell. Try to focus on actions such as:
- Marketing campaigns to promote your products and services
- Building your social media following to increase brand recognition and loyalty
- Designing and implementing an effective brand personality strategy
- Collaborating with organizations and non-profits in your area to increase your company’s corporate social responsibility factor
- Networking with industry leaders and increasing your company’s presence at industry events
- Investing in a solid brand image that remains consistent across platforms, products, and campaigns
- Assessing your operational efficiencies and make improvements to drive profitability
- Ensuring the management team is balanced and deep, so that the business is not solely dependent on the owner
- Updating your accounting systems, so they are current and robust. Buyers want to know what they are buying
Tip #2: Don’t Wait to Sell
When you select a sell by date, remember that economic conditions and buyer interests can change quickly. You should always pay attention to the state of the economy and sell once the market reaches a peak or period of growth. In addition, you should pay attention to your business’s industry and sell when conditions are optimal.
Once you reach your sale date, don’t wait too long to finalize the sale. When the economy and your industry reach its peak or there’s a steady period of growth, sell. This is the best possible opportunity to sell your business and the best possible time for interested parties to buy a business in CT. Don’t miss out on this opportunity by waiting too long.
Tip #3: Pre-Qualify Your Buyers
Once you place businesses for sale in CT, the buyers will start calling. It may be tempting to enter into negotiations with the first call you receive – but refrain from doing so. To buy a company in CT, your potential buyers will need to have a solid background in your industry or general business investments.
Before sitting down to any negotiations, pre-qualify your buyers. Request resumes, portfolios, or any other information that could help you decide who to sell your business to. Once you’ve received the necessary information, schedule meetings with the top applicants. Identify the best buyer or set of buyers from this group and enter into negotiations.
Tip #4: Always Negotiate
The number one rule when selling your business is to negotiate. You should never accept a deal up front when you could get a better one through negotiation. This is especially important when you have more than one potential buyer.
Negotiating the best deal for your company while honoring its full value is key to selling a business in New Haven and other major cities like Hartford and Fairfield, CT. You never know what type of potential buyer could come from these areas. Many CT business buyers are well-informed and well-versed in the art of negotiation.
Counter with these top negotiation tips:
- Before entering into a negotiation, determine the lowest amount you will settle for. For example, your lowest amount could be $1 million.
- Next, determine the amount you want to sell for. Your ideal amount could be $1.5 million.
- Finally, increase the amount you want to sell your business for. This will be your negotiating amount. For example, you can say you want to sell your business for $2 million. Your buyer will try to go lower, but you will likely receive an offer between your ideal amount and your increased amount – a win for your sale.
Tip #5: Hire a Business Broker from One of the Top M&A Firms in New Haven, CT
For the best results when selling your company, hire a mergers and acquisitions broker from VR New Haven. Hiring a professional to guide you through this process will help you find the right people who want to buy a business in CT. Even if you think you have all of these tips down pat, hiring a business broker in New Haven, Fairfield, or Hartford, CT will help you negotiate the best value from your business sale.
Whether you’re trying to buy or sell a business in Hartford, Middlesex, Windham, or Fairfield, VR New Haven is the top business broker to turn to. The professionals at VR New Haven have over 10 years of experience helping business owners sell business of all sizes, making us one of the top M&A firms in CT. Our 9-Step Selling Process will teach you how to close your deal effectively and efficiently. Hiring a VR business broker in New Haven will ensure your sale is a success. Contact VR Business Sales and get top dollar for your New Haven business today!