How not to sell a business in 2019
It’s an M&A industry FAIL. The fact that the majority of small business owners, founders and solopreneurs out there have little to no awareness of the options for selling their business on the market is egregious, considering where this market is, and has been for sellers for some time (spoiler-alert: market is at an all-time high in terms of valuations and favorable deal-terms for sellers).
In their Q3 2018 Executive Report the IBBA states:
Few sellers are taking the time to prepare themselves for the M&A process. According to advisors, 67% of sellers did no advance planning before putting their business on the market. Nearly a quarter (23%) did less than a year of planning.
Meanwhile, retirement continues to lead as the number one reason to sell across all sectors, followed by burnout and new opportunities. And, year-over-year, time to close has increased in most sectors.
One option worth checking out? Find a business broker or related professional and figure out what you’ve got….
A consultation with a business broker, business intermediary or valuation specialist is typically free, and it’s a good relationship to start up early. If you’re an entrepreneur and you’re wondering what your business might be worth, who the buyers might be or whether it’s even sellable, -why not have a conversation? You can ask a friend, of a friend, of a friend if they have somebody the know who you can speak with, you can ask your accountant (which could be a great option if you have a trusted, established relationship), you can search online databases like the IBBA (non-profit) or BizBuySell (for-profit), or you can get matched with a professional in your industry, anticipated deal-size and geographic area with BizNexus. Either way, -probably a good idea to speak with some professionals and get your ducks in a row when you’re talking about selling the biggest asset you have, and possible the most significant financial transaction you’ll ever be a part of.