Selling a business is never easy. You will need to do a valuation of the business and take steps to make it more attractive to potential buyers. Advertising the business for sale is also crucial because you want to generate a lot of interest in your business. Once you’ve put up the business for sale, you should be prepared to receive and analyze offers. It may take a few days, weeks, or months to sell the business, but you should not be in a rush to accept any offer. Ideally, you should consult a business broker to make your work easier.
How Long Does It Take to Sell a Business?
On average, it takes 5 to 11 months to sell a business. This is not to say that you won’t be receiving offers during the first few months. However, the offers you receive may not be the best. That is why business owners are advised to continue running their businesses as usual. The more they improve the company’s financial position, the higher the prices they will attract.
Please note that there are many jokers in the market, so not every offer will be viable offer. To weed out jokers, consider asking for a refundable deposit of around 10% of the purchase price in the form of a check. If you accept an offer, you can cash the check and deduct the amount from the offer price. Jokers will be discouraged by the deposit requirement.
Due Diligence
It is important to note that most offers made by potential buyers are conditional. One of the key conditions is the business passing due diligence. Buyers usually make offers based on the business description provided by the seller. If an offer is accepted, but the buyer discovers the seller lied or omitted details in the business description, the offer can be revoked. If you want to sell the business fast, therefore, you have to provide as much information about the business as possible. The information must also be accurate.
Analyze all the Offers
The sale of a business can be delayed by several factors. For starters, the terms and conditions of the sale agreement may be inconvenient. A buyer can make a decent offer, but they may only be able to pay the quoted purchase price in multiple installments spread out over several months. On the other hand, a buyer may have ready cash to pay for the business but their offer is a little bit lower than your asking price. That’s why you must analyze the terms and conditions of the offers you receive.
Legal Services
Before you accept an offer, it is recommended you consult a commercial lawyer or a contract lawyer. This is because you do not want to get a raw deal. Fortunately, many lawyers have experience helping business owners with business sales, mergers, and acquisitions.
MergersCorp M&A International
MergersCorp M&A International is a company that offers merger and acquisition advisory services. The NYC-based company offers services globally. When you want to sell your business, be sure to work with MergersCorp M&A International to attract a global audience as the company will advertise the business globally and receive offers from both local investors and multinationals. Whatever industry you are in, MergersCorp M&A International has a team of experts to help you find the right buyer.
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