What’s the Quickest Way to Sell a Business?

Selling your business is likely the largest sale that you’ll ever make and shouldn’t be a snap decision. If you’ve decided to pull the trigger on the sale of your business you might be expecting a quick turn around. Believing that your business will sell overnight is a common mistake but there are steps that you can take to encourage a quicker sale.

When a business changes hands the sales process includes preparation, marketing and closings. Each of these take time and involve working with a network of professionals like lawyers and accountants. The best way to sell a business quickly is to create the most appealing profile possible. A business broker will walk you through the steps to prepare your business for sale, attract prospective buyers and encourage a shorter timeline for sale.

How to Expedite the Process of Selling Your Business

The average timeframe for selling a business is between 6-12 months. During this time current owners are expected to create an exit plan for themselves, market their company to ideal buyers, organize documentation, reduce liabilities, increase efficiency and boost performance for an appealing portfolio.

When you want to sell your business fast preparation is key. Taking the correct steps at the beginning of the process will simplify a complicated process.

Create an Exit Plan: Prospective buyers want to know what will happen when the sale of a business is finalized. Not everyone opens their business thinking about selling it one day but it is important not to underestimate the importance of an exit plan. This plan should focus on maintaining daily business operations after a sale is finalized. If a business is very dependent on the current owner, there will likely be a decline once that owner leaves. An exit plan should include any necessary training, information hand-offs, management plans, access to necessary resources and more, to reduce any impact on daily operations.

Improve Operations & Profile: One of the most effective steps to sell your business quickly is to create a profile that is undeniably appealing. Consulting a professional can help to pinpoint problem areas, identifying opportunities for improvement. Document important processes and create a transition plan that will reduce any impact on daily operations. An established management team that is committed to staying after the sale will also act as a selling feature to any potential buyer.

Choose the Right Time to Sell: There is a right and wrong time to list if you want to sell your business quickly. Listing a business when the market is in decline will often mean extended time on the market or low-ball offers that are well under your asking sales price. By planning ahead of time it is possible to create favourable conditions for your business, making it easier to sell. If your business is thriving and the market conditions are favourable it is possible to see a quicker timeline for your sale.

Identify Your Ideal Buyer: You don’t just want to find a buyer, you want to find a qualified buyer. The best way to do that is by identifying your ideal buyer. This may be an individual, a competitor brand or a private firm. Once your ideal buyer is identified it’s possible to create a strategic marketing plan designed to attract those specific buyers.

Gather Up All Necessary Documentation: Potential buyers and their legal teams will want to have access to current financial statements, tax returns and other relevant documents for several years leading up to the sale and projections for the years following.

Schedule a Business Valuation: Assigning a value to a business can be difficult, particularly if there is a sentimental attachment involved. In reality the value of a business is based on profitability, assets, liabilities, holdings, projected growth and the market. When setting a sales price for your business it is always better to consult an expert in the field to review your figures and create a realistic listing price.

There are plenty of businesses on the market, just waiting for the right person to find them. This makes competition high. When selling a business you need to make sure that you are presenting it at its most valuable. The better your business looks, the more it will stand out from the competition. This is why it is so important to work closely with a team of industry professionals including lawyers, accountants and of course, a business broker.

How Working With a Business Broker Can Help to Sell Your Business Faster

For many business owners looking to sell you’ll likely only have to go through the process once. This means learning the ins and outs of commercial sales on the fly. Taking an amateur approach to selling a business will often result in unfavourable terms, prolonged sales processes and avoidable mistakes. Something as simple as not having potential buyers sign a non-disclosure agreement can have a negative impact on the overall sale.

An experienced business broker will walk you through the preparation process, connect you with other professionals that will help you along with your journey, as well identifying the best time to sell your business quickly. Brokers will gauge the state of the market, offer guidance on comparable sales in the industry and access to a network of qualified buyers.