Sell A Business In Raleigh
An estimated 4,500 individuals are looking to sell a business in Raleigh, NC each year. Researchers estimate that over 10 TRILLION DOLLARS in business assets will be transferred by 2025 as baby-boomers look to retire. The largest transition of business ownership in the history of the world is now upon us as boomers retire and younger generations abandon traditional employment career models.
Each month over 1,000 potential buyers are searching specifically for a business to buy in the Raleigh/Wake County Area. The secret is to get your business in front of these potential buyers is you want to sell a business in Raleigh.
Many businesses are sold quickly while others sit on the market for years simply because business buyers are unaware that these businesses are even on the market. In real estate and business, people get the importance of location, location, location. Wise business owners wanting to sell their business also understand location combined skilled expertise.
A Business Or A Baby
If you are a business owner, your business is your baby. For many business owners, they gave birth to this dream long ago. They toiled in the early start-up years like parents with a newborn or toddler. Through early childhood and business teen years, successful business owners stayed the course spending early mornings and late nights along with personal sweat equity to grow their business.
Owning a business is in many since is akin to a child or family member. It’s a very personal matter. If you are looking to sell a business in Raleigh you need to think through the following five considerations.
7 Steps To Sell A Business In Raleigh
1. Confidentiality- Your competitors, customers, vendors, and employees do not need to know about your wishes to sell your business. You need a trusted advisor and someone that fully understands your baby/business.
Transworld Business Advisors is the respected industry standard globally. As a result, the number two, three, four & fifth-ranked business brokers combined are not growing as fast as Transworld. Trust, relationship, and results are why so many business owners are turning to Transworld to sell a business in Raleigh and around the world.
It’s important to keep things confidential throughout the entire process of selling your Raleigh business. Stakeholders in your business do not need to be anxious or sense instability. Although this can be difficult, it is imperative for the benefit of your business and everyone involved maintaining confidentiality.
During the selling process, Transworld uses the latest technology to present your business to thousands of potential buyers nationally and globally. This multiplies the odds in your favor so that a successful sale will take place.
2. Understanding The Process- The process of selling a business in Raleigh is long, tiring and trying. There seem to be countless hoops to jump through involving accountants, buyers questions, lawyers, and marketing all leading up to a pending closing.
Selling a business is not for the faint of heart. It requires precise skill and understanding of the nuances and process of selling a business. An estimated 50% of business sales end due to the buyer getting nervous or cold feet. A business broker is educating the potential buyer during the entire buying process. A business owner attempting to sell his/her business him/herself will not have the time, patience or expertise to educate a potential buyer for three to four months.
The effort to sell a business in Raleigh can be nuanced and difficult and understanding the process is extremely advantageous.
3. Pricing- By far the number one reason that buyers give to not buying a business is pricing. Most owners, while they are savvy and proven businesswomen/men, they fail to understand the foundational principles to valuing their own business.
If you ever watch Shark Tank on TV you see this problem EVERY SINGLE EPISODE. They come to the sharks, they want to borrow money, they state the amount of money they want and the sharks ALWAYS asks them, “Where did you come up with that valuation?” The small business owners are NEVER even close.
In a recent transaction, an owner of a Dry Cleaner asked for a business valuation so they could set a selling price. Their Transworld ran the business’s numbers through their database comparing to over 47,000 closed deals specifically of dry cleaners nationally. You read that right FORTY-SEVEN THOUSAND.
These numbers allowed this business owner to list their business properly, avoid wasted time and frustration and more importantly to sell their business in a timely manner.
Multiples of EBITDA, SDE, FFE, Inventory, Real Estate and countless other details go into pricing and business valuations. If the ultimate goal is to list a business for a high amount and never sell it then there is no reason to seek consultation through a business advisor. If your goal is to list your business at the maximum amount that allows for a timely sell then use an advisor like Transworld.
To sell a business in Raleigh it needs to be priced correctly.
4. Marketing- I recently spoke to a Transworld Advisor from Charleston, SC. One business that he and his wife had recently listed, they received over one thousand emails and phone calls. This TW Advisor had marketed this specific in an effective manner that allowed the business to sell in just over four months.
Once your business is listed with Transworld the phone will begin ringing off the hook. The issue is that the majority of the contacts are simply not qualified to actually purchase a business.
Your Transworld advisor has been through this process hundreds of times and with 39 years of experience, they have perfected a process that quickly identifies qualified buyers.
Transworld will get your business in front of hundreds of potential buyers while quickly getting too serious, qualified buyers. The TW database maintains an ongoing list of qualified buyers specifically in areas like Raleigh, NC. This means that as soon as you list your business with Transworld and email is sent immediately to these serious buyers.
To sell a business in Raleigh you need a targeted and tired marketing plan. The reason I suggest Transworld’s marketing is because theirs has been developed and perfected for nearly 40 years.
5. Honest Business Presentation- Is your business really ready to be sold? Most aren’t but the most business owner might not see it. Most often there are simple steps to take to get a business ready but without an advisory, the most obvious steps aren’t seen or taken.
You better believe that any potential buyer is going to look under the hood. Accountants know that numbers don’t lie and you better believe that your businesses numbers are going to be examined.
Financial records, equipment, inventory, leases, receivables are all components that can be impressive to potential buyers. These items can also tell and entirely tell another story, a negative one if not presented properly. Buyers have options, they may be looking at your business while shopping another business in your immediate area. If you are going to sell a business if Raleigh, you are going to want to make an effective presentation.
Honestly presenting your financials and other pertinent details are curial for anyone wanting to sell a business in Raleigh.
6. After The Sell- This considerations has two issues to think about. First, you need to consider the new owner's transition. Are you willing to hang around for 4-6 weeks for training and helping the new owner transition smoothly? Are you willing to stay as a consultant if needed or is your desire to take an extended vacation? Business owners that sell their businesses have different desires and their wishes are negotiated during the selling process.
Owners that are offering seller financing typically are more motivated to stick around for coaching, training and ongoing support. These sellers have money on the line so they have a vested interest that their business continues to prosper and grow (They want their loan repaid).
The second consideration has to do with the seller receiving income. Whether you are receiving $15,000,000.00 or $3oo,000.00 there are tax implications to be considered. Be prepared before your close so that your money is placed with a financial advisor so that your money is best protected for maximum growth.
There will be a lot happening during the negotiation and due diligence time frame so careful consideration needs to be given for anyone that is going to sell their business. This money is part of your retirement, money to purchase another business or money to travel. Once you list your business with a Transworld Advisor you need to be thinking about what you plan to do after the close.
7. Awareness- Please remember that your business is not sold when the Letter of Intent is signed by both parties. Many business owners want to coast during the due diligence period believing that their business is all but sold. Some believe that only 50% of businesses that enter due diligence actually sell.
Inaccurate numbers, late or hard to get financials and an unavailable owner are three of the primary reasons given for negotiations that end. Potential first-time buyers get nervous, accountants become suspicious and attorneys can’t complete legal documents when the business owner checks out.
If you want to sell a business in Raleigh then you need to be transparent, honest and available during the due diligence period. A credible business advisor will guide the owner through the sale of their business in Raleigh as they seek the details of the detailed checklist.
Want To Sell Your Business In Raleigh
Want to sell a business in Raleigh? Confidentiality, Understanding Of The Process, Pricing, Honest Presentation and After The Close considerations need to be on the mind of the business owner.
There are a lot of businesses now being sold in the Raleigh market. Your business and the presentation you and your business advisor present will either compel investors and buyers as they compare your business against other options.
The information that you provide to your business advisor will allow her/him to create a winsome appeal through your business prospectus. What will make your business stand out if an investor or potential buyer receives 8-10 prospectuses of businesses for sale in Raleigh?
Investors are going to want to see the proof in the way of verifiable numbers. Without attractive, clear and complete numbers the buyer's mind is filled with doubt rather than trust and excitement.
Where To Begin
To sell a business in Raleigh, great attention must be given by the owner to prepare his business for the sale begins with a great relationship with your business advisor.
