Question re: Selling business

[kssoaper]

We need some advice on selling our business - - hoping anyone who has done this can offer some advice.

The first issue we run into is: How do you identify a real potential buyer? I don't want to just hand out our sales info and other details to just anyone who inquires about the business.... or do you just 'have' to do that as part of the selling process? Obviously a ton of other questions but this is one we just can't get past so thought I'd see if anyone has any thoughts on this :rolleyes2

Thanks in advance,

Judy

[Judiee]

The easiest way is to use a broker. They will do the legwork, locate potential buyers, etc. Expect to pay 10% if you finalize a sale.

Earlier this year we used Quiet Light Brokerage (http://www.quietlightbrokerage.com/) to sell a web business. You will need to provide 2-3 years of financial data and complete a survey about your business. They ran with the ball and weeded out the tire kickers and found several qualified buyers - culminating in a cash sale.

Most sales of a business will require a non-compete agreement (2 yrs or more). My advice - make sure to add to your asking price to account for the value of a non-compete.

Edited August 20, 2010 by Judiee

[kssoaper]

Hi Judiee (love how your name is spelled) -

Thanks so much for the info and advice... I will definitely check out the website you suggested... no problem on the 3 years financial data, been at this almost 15; am getting a little worn out from being a hostage to the business

Going to check out the brokerage site now,

Thanks again,

Judy

[glittergirl]

You know, I listed my candle biz on craigslist, sold it in 2 weeks. I was never so surprised in my life!!! Nest weekend, the new owners are taking over, I will train them for 30 days, maybe more if need be. I, too, am tired of being a "candle slave" lol > All in all it was a great biz, just ready for a change. Best of luck to you

[jasikajack]

Make sure you're getting the maximum response from your business for sale advertisement,the right approach can significantly increase the value of your business and help make the sale process easier,talk to most business brokers, advisers, accountants and so on, and you will find that there is a lot of mysticism, confusion and jargon surrounding the selling of a company. If you substitute the smoke-and-mirrors with preparation, a bit of common-sense and an experienced broker, the process can be very rewarding.

printed lanyards

[Judiee]

Might also add to list high and allow "a little" room for sale price negotiation. You want to get at least 3X best net annual profit.

[coconut]

Also get a good lawyer. Priceless. Otherwise you can wind up with some terrible problems.

[adirondack]

I sold my canlde/tart business back in April and low and behold I bought it back at about 10% of what I sold it for.

They just couldn't handle it and this week is my first week of production!

[Enchanted]

I didn't sell mine but did shut it down. I basically walked out of my shop one day and didn't go back in it for a year. I went in it over the weekend and just sat in the floor and cried. I don't miss the business but I do miss my love of the craft.

[kssoaper]

That is so sad I can understand, but I've got rent to pay! If I walk away today my landlord would come looking for me. My SIL asked me the other day what exciting new things I was planning for the holidays and when I heard myself say 'Nothing' it just reinforced the fact I think I'm ready for a change... energy/enthusiasm is lacking.

[EricofAZ]

There's one for sale on ebay.

Put this number in the search box: 180556082038

[kssoaper]

Geez, that actually looks like a pretty good deal - just for all the equipment and the trailer.... don't know how long they've been in business and what their customer base is like............