5 Variables That Can Make or Break the Sale of Your Business

As a business owner ready to put your company on the market, you’re about to make the largest deal of your life. You need to be prepared for the stress and struggle that can come with negotiating every detail.

By being ready for anything, you can avoid a lot of obstacles along the way. The better prepared my sellers are, the more easily I can steer them through the sale process.

In business, it’s best not to worry about things outside of your control. But, there are things you can do to stack the odds in your favor. Let’s look at five variables that can make or break the sale of your business.

1. Your Exit Strategy

I have talked a lot about the importance of having a solid exit strategy. Selling your business isn’t as easy as pulling together your records and finding a buyer. In order to ensure a smooth transition, you need to create a plan for your company.

Consider how you will tell your employees about the sale and reassure them of your decision and their job security. You also need to think about putting together a five-year plan for your business so that potential buyers can see that the company has a future.

2. The Potential for Alternative Purchasing

If you can put together a deal with seller financing, then you have a greater chance of selling your business. There are a lot of people who would love the opportunity to run their own company, but for whatever reason don’t have the finances to make a purchase today.

Working out a deal with them where you maintain ownership of the business while they transition into ownership can be a great way to create a secure and stable transaction.

3. Your Team and Structure

I can’t stress enough the importance of keeping your team on the same page as you while you put your business on the market. The last thing you want is to lose your best employees during the transition.

It will be nearly impossible for a buyer to successfully complete a change of ownership without key staff members on the payroll. Make sure those people know who they are and are excited about their future.

4. The Stability of Your Cash Flow

The more stable your cash flow is, the more likely you will be to sell your business. Buyers want to see not only that you’re making money today, but that they can trust your company will be making money years from now.

5. Your Business Broker

Hiring a business broker is the surest way you sell your business for top dollar. We have the tools and know the techniques to ensure a quick sale. Make sure you find someone to represent your interests well.

Contact me today for a free consultation.