Business Brokers - Sell Business - Business Sales and Acquisitions - SunbeltNE

The recent economic recession has hit hard for the small to mid-sized business owners. It is at such times that the vulnerability and risk of owning and managing one’s own business is exposed.

Entrepreneurs who wake up a suddenly to find themselves in a desperate need to sell business, usually end up leaving lot of value on table which could have been avoided with careful exit strategy. A little bit of preparation can solve complex issues related to selling a business.

Be sure and explore the following potential groups of buyers to avoid being pushed against the wall with no options left:

Family Members:

Family members are the obvious traditional category if you have an entrepreneur lineage in your family. You also have the satisfaction of knowing that the business is still within the family.

But tread carefully. Due diligence must be practiced in answering issues like does the family member have sufficient cash to purchase the business? Can you give up complete control to another family member? Is it going to create rifts with other members? Generally an outside buyer can eliminate such sticky problems usually associated with family members as buyers.

The key to deciding on a family member as a buyer is threefold: ability, family agreement, and financial worthiness.

Business Competitors:

The main concern here is lack of trust and providing the competitor an undue advantage if they smell some trouble or a desperate need. Professional business brokers can help with such delicate situation to negotiate a confidential and worthwhile deal. The catch is of course finding the right competitor while maintaining confidentiality and discretion throughout the selling process.

The Foreign Buyer:

Economic downturn provides a window of opportunity to many foreign players who are looking for a way to be part of the great American Dream. They are ready to work hard and become part of the millionaire tribe. However, their business acumen does not necessarily coincide with that of the seller (as would be the case with any inexperienced owner). Again, only an expert business broker knows best how to approach these potential problems.


Synergistic Buyers:

Such buyers are looking for a synergistic growth for their business that would result in lower costs, new customers, and better supply source and especially in a downturn economy they are looking at way to strengthen and gain a competitive edge to survive and grow. In order to attract such buyers, your business portfolio needs to highlight features showing how buying your business could benefit them. An experienced business broker will prepare the right business portfolio to attract such buyers.

Financial Buyers:

This category of buyer comes with perhaps the longest list of criteria--and demands. These business buyers demand for maximum leverage, but if you prefer to continue to work with the company in an executive and managerial position, they are the right buyers. Their concern is mainly on the bottom line. Usually they offer the lowest purchase price compared to other buyers. A business advisor with strong negotiation skills can ensure you get the fair market price.


Individual Buyer:

The recent recession has forced many qualified top level executives out of jobs. So there will be many potential buyers in this segment looking for small business to buy to gain independence and control their destiny. The difficulty lies in finding one who is ready to make a plunge. Finding an executive who might be interested in buying a business may need some professional help from business brokers.

It is advisable to visit or speak to professional business advisors who have years of experience and would devise an exit strategy that will save time, money, energy and resources along with offering you comfort to deal with the grueling experience of putting you business on sale.