505 business buyers have contacted our Transworld Business Advisor Raleigh office since January 1st of this year. This is a significant number, especially if you are a business owner located in Wake County.
Vetting Raleigh Business Buyers
When a business buyer contacts our Raleigh office concerning our current listings, they are required to fill out two forms: A Confidentiality Form and a Buyers Profile. The confidentiality form ensures that the business-related information they receive will be held in the strictest confidence and the Buyer Profile gives a glance at the buyer's professional background and interest as well as their financial means to procure a business.
505: The Importance of This Number
When 505 business buyers contact your office in three and a half months, there are several things to take note of:
1. Great News For Sellers - In any industry, buyers drive valuation through supply and demand. A software business that we listed in late March went under contract in just three weeks and received close to a full price offer. This same business has a substantial number of buyers in a backup position in case the deal falls through for any reason.
2. Marketing – Transworld Business Advisors is the largest business brokerage in the world. Transworld dominates the marketing space in this industry and the 505 number provides a proof of concept for local markets. If you want to sell your business, make sure you work with a brokerage firm that brings many buyers to the table.
3. Raleigh Market – People that live in the Raleigh know that our business market is on fire. I recently received a call from Dublin, Ireland from a businessman that wants to relocate his family to Raleigh, NC. Many of the folks relocating to Raleigh do not want to work for corporate America. Many relocating here are tired of corporate America and they want the earning potential and freedom of owning their own business.
4. Great Businesses – Transworld has in access of $3.5 billion dollars of business listing inventory worldwide. Listing profitable, growing businesses is what drives buyer interest the most. Many buyers are first-time business buyers and they need to be educated on the process of buying a business. We have written a free eBook to help guide buyers through this nuanced process.
5. Business Owners and Valuations – Most business owners undervalue their businesses because they do not understand the metrics driving an accurate business valuation. Just this week, we spoke with two business owners that valued their businesses at less than half of its true valuation. In an effort to save a little bit of money, they leave tens of thousands of dollars on the table. A trusted, professional business broker will provide you with an honest and accurate valuation for your business.
Conclusion
Are you a business owner? Make sure you are selling your business at the right time to maximize your profits. Speak with a business advisor early in the process so that you will know all of the factors that impact the final valuation of your business. You only get one opportunity to sell your business, so be informed, educated and prepared!
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