Considerations Of Selling Your Business
So you are considering selling your Raleigh business? Selling your Raleigh business is a huge decision and one that shouldn’t be taken lightly. Many consider selling or buying a house as the largest financial decision that people must make but actually selling your business in much larger.
The key priority is selling one's business for the highest profit.
How To Sell Your Business?
Business owners are a special breed of individuals. They are often known as pioneers and dreamers with an independent spirit. The number of sacrifices that business owners have made to launch, market, attract customers, keep customers and build goodwill to sustain a business is an incredibly intensive undertaking.
When a business owner makes the decision to exit their business, it isn’t a decision to be taken lightly. The business owner desires to work with a trusted and experienced broker that understands the importance of confidentiality.
Confidentiality is vitally important. Employees, competitors, customers, and vendors shouldn’t be alerted of the sale because the sale of your Raleigh business is contingent upon continued revenue and owner’s benefits right up till the sale of your business. In other words, owners need to keep their eye on the ball and keep their business growing before the sale of their business.
All of this means one thing, selling your Raleigh business must be in coordination with a professional business broker. Transworld Business Advisors is the number one business seller in the world. As a world leader in business sales, Transworld gives business owners the confidence and peace of mind they need for the serious decision of selling your business.
The Wise Choice Of Selling You Raleigh Business
Transworld Business Advisors recently celebrated their 40th anniversary. For four decades Transworld business Advisors has helped owners of small and larger businesses alike sell their businesses worldwide.
Transworld Business Advisors has $3.5 billion dollars in the current business listing inventory. This simply means that more business owners trust Transworld Business Advisors than anyone in the industry.
Transworld Business Advisors is the fastest growing Business Brokerage Franchise in the United States. Entrepreneur Magazine has ranked Transworld #1 in its category.
Knowing The Raleigh Market
Raleigh continues to be a leading economic hot spot for entrepreneurs both buying and selling Raleigh businesses. If you are considering selling your Raleigh business, you couldn’t live in a better city than Raleigh.
Raleigh has seen the job market increase by 3.5% over the last year. Future job growth over the next ten years is predicted to be 42.7%, which is higher than the US average of 38.0%.
Tax Rates for Raleigh
- The Sales Tax Rate for Raleigh is 6.8%. The US average is 6.0%.
- The Income Tax Rate for Raleigh is 5.8%. The US average is 4.6%.
Unemployment is 4.3% compared to U.S. 5.2%.
Job Growth is 3.5% compared to U.S. 1.6%.
Raleigh, NC has seen a 38.5% growth in technology jobs.
While this recent growth is a testament to new investments being made in Raleigh’s success, the surrounding Research Triangle region has a longstanding history of innovation.
These stats and many more make Raleigh, NC an attractive destination for business buyers looking to buy into Raleigh’s economic boom. A business seller needs to keep in mind that a business buyer is seeking to buy an income to support themselves and perhaps their family. Business buyers aren’t always motivated primarily by the business industry.
Accurate Business Valuation
When business owners call us they all ask the same question, “What do you think my business is worth?” This is a great question, especially if you want to sell your Raleigh business. A business that is priced wrong will not sell so it is important to know all the factors that contribute to your business valuation.
Transworld Business Advisors has worked with business owners to value tens of thousands of businesses.
· Fair market value - The price at which the property would change hands between a willing buyer and a willing seller when the former is not under any compulsion to buy and the latter is not under any compulsion to sell, both parties having reasonable knowledge of the relevant facts.
· Intrinsic value - Stock values that investors would consider.
· Fair value - Legal standards to value. Often used in divorce.
· Investment value or strategic value - The value to specific buyers. It could exceed the fair market value.
Asset Approach, Market Approach, and Income Approach are the three most used methods of determining a true business valuation. Also remember, Buyers, determine a business' eventual sale price. Not valuation experts. That is why no one can tell you exactly what your business is worth. It isn’t your banker, CPA, lawyer, broker, or mother-in-law. The only individual that will tell you what it is worth is the eventual buyer - and that will be a subjective evaluation.
Avoid These How To Sell Your Business Mistakes.
8 Considerations To Selling My Raleigh Business
Business owners have vast knowledge and experience running their business but many end up losing a lot of money and time when selling their own business. This article will look at 8 considerations for selling my Raleigh business.
There is a lot on the line and the tumultuous details associated with selling a business are daunting labor for business owners. A top priority for Raleigh business owners wishing to sell their business is private. Most owners do not want competitors, customers, employees or vendors to know their business is for sale.
Many business owners make a drastic mistake by not understanding the difficulties that can arise with the sale of their business. Decades of sweat equity, investment and profits can be lost in an instant.
Sellers Side To Selling My Raleigh Business
1. Decision To Sale - This isn’t an easy decision. What are the motivations that bring a business owner to this decision?· Retirement-
· Health- 
· Other Business Interests-
· Burnout-
· Industry Changes-
· Life Style Changes-
Most owners disclose their reason for sailing their business.
2. Business Broker Relationship - Because of privacy concerns, business owners seek out a trusted business broker. A professional business broker has knowledge and expertise that assures a smooth, completed transition.
3. Documents - Business Summary, Profit and Loss, Balance Sheets and Last Three Years of Tax Returns. These documents are presented to their business brokers so the correct multiple can be applied to set the sales price. The sales price is set to buy comparing industry standards from tens of thousands of sold businesses.
4. Seller Financing - Business owners that offer some degree of seller financing sell their businesses quicker.
5. Marketing - How do you market a business so that clients, competitors, customers, vendors, and employees aren’t made aware? While this is tough it isn’t impossible as business brokers do this 365 days a year multiple times over.
When someone is selling their house they want everyone to know. When a business owner wants their business they can’t afford for the public to find out. A trusted business broker markets businesses so that hundreds of buyers are able to consider each business.
6. Communications - The business owner and their broker speak frequently so that they are aware of inquiries and potential concerns. Understanding buyer concerns allows owners to explain further to potential buyers the necessary details so that the broker can better represent the listed business.
7. Offer & Negotiation - Most sellers want to make as much money as possible and while selling their business quickly. Unfortunately, these two desires are at war with one another. The tension built between these two desires is reduced by setting an industry standard and educated selling price.
Is the owner willing to help through the transition, offer some degree of owner financing or offer other enticements? The more that the owner is willing to help the more likely their business is to sell.
8. Transparency & Availability - During the time of due diligence the buyer is going to have a lot of questions, they are going to want to see numbers and the business. They are going to want to understand the business as much as possible.
