Having a business is a rewarding way to earn a decent income, and while some companies fail to flourish, others have withstood the test of time as they continue to thrive for many years or decades. But no matter how profitable a business may be, there is always the possibility that the owner may think about selling it due to various reasons. For instance, they may have health problems, partner disputes, or no heir to take over. They may also feel ready to retire and live a more leisurely life.
If you are in Dallas and considering selling your business, passing the torch to someone who will care for your current customers and the team is essential. For this, you will need the help of an expert to guide you throughout the process. This article will discuss how to sell your Dallas business successfully with the help of a business broker.
Create an Exit Plan
Over the recent years, many young entrepreneurs have sold their businesses over highly lucrative deals. New figures indicate that the number of business owners under 40 selling their companies has increased by 23 percent in the last year, most of which made a fortune from the sale. But while this may seem encouraging to other entrepreneurs who want to exit their business, it is essential to know that these young business owners have other money-making opportunities.
If you are a young entrepreneur and you need to have similar opportunities in place, you may end up regretting your choices. Meanwhile, if you are retiring and do not have an exit plan, you may be forced to accept a lower purchase price for your business or extend the desired retirement date.
For most entrepreneurs, especially those running their business for decades, selling their company feels like letting their grown child leave the nest after spending years caring for them. But to ensure that your “child” continues to thrive, you must create an effective exit plan at least one year before selling your business. This planning gives you lots of time to get your affairs in order since you must make an in-depth report of all your finances. Document your assets, liabilities, expenses, and business performance. You should also include your supply and distribution agreements, annual tax returns, and cash flow statements in the report.
Determine Your Business’s Market Value
Once you complete your business report, you must get a pre-money valuation to determine your company’s market value before selling it. The report will create the valuation, so ensure that all the information there is accurate and current. If you receive a low initial figure, you may need to provide more evidence to prove that your business is worth more.
Hire a Business Broker
Some entrepreneurs naturally offer to sell their business to relatives, friends, or acquaintances first since they may already be somewhat familiar with their company. If your friends or family members have a basic grasp of how your business works and they saw how it became successful, you may easily convince any of them to buy it from you. But if this is not the case, you will need to hire a professional to help you sell your Dallas business, and you can turn to experts from IBEX Middle Market Business Brokers to get the best outcome.
An experienced business broker will find the best buyer for your business through an intensive screening process that may involve sending direct mail, telemarketing, and emailing prospects, among others. They will also check everything you overlooked to ensure the sale goes smoothly. Ideally, your business broker should check that all the necessary paperwork is complete and all permits meet all license requirements. In addition, they also help you get the maximum value for your business during the valuation process.
Moreover, they will advise you on the best time to sell your business since many factors can affect the sale quickly. These factors may include the demand for your products or services, as well as the current state of the economy.
Selling your Dallas business can be easy. Consult an experienced business broker to help you make a sale, meet your financial goals, and understand the best fate for your business.