In order to succeed at selling a business, owners have to discover what buyers are seeking when they search for a commercial investment. This is especially helpful for those who have only ever owned one business. The understanding will inform owners how to decide if the business is market ready, and how to proceed.
Find an Experienced Commercial Broker
When the idea of selling first crosses the mind, make a consultation appointment with a broker. A broker can provide a synopsis of the current market trends, let owners know whether delaying the sale might prudent, and make recommendations for changes to attract buyers. If the market is depressed, waiting may result in a higher financial gain. Keep in mind that it may take a year or two to prepare the business for listing.
Motivations for Buying
Some buyers may be seeking large space in an excellent location for housing development. They may not be interested in running the business at all. Plans can include transforming the building into condominiums, tearing it down to begin new construction, or subdividing the land for profit. In those cases, the nature of the business, how it operates, and appearances make little difference in the sale.
Large companies will often buy businesses to turn them into the newest location of a massive service or retail chain. The nature of the business will not matter, but appearances will have a major effect on the pricing and the attraction. The colors or the layout may not be important, but the condition and safety of the building is of great importance. These buyers will be seeking the opportunity to make the building look like every other chain location for as little investment as possible.
Buying a Business to Operate It
The buyer who is interested in operating a business, or just owning it as an investment, will be looking for a strong business that can operate efficiently after the closing date. That will take a well-developed management staff who can take over daily operations. Organized financial information that indicates a profit, and loyal suppliers and customers will add to the value of the business and sell my business make it more attractive.
Appealing to this buyer requires the owner to empower employees, streamline operations and finances, and be sure the building is impressive. That may mean selling unused equipment, remodeling the interior, or hiring a landscaper for the grounds. Knowing what needs to get done to maximize sale profit is the best way to reduce selling time and walk away with significant financial gains.