How To Sell A Business By Gus Trantham Pg 2

HOW TO SELL A BUSINESS

Business Opportunities & Commercial Real Estate Division

RE/MAX Suburban

to potential investors in today’s market will not fly. The value of the business must be on paper.

Editor: Gee Gus, you always make me fell like I’m the businessman when I interview you and with what you have already told me, “How do I set a realistic asking price for a business?” I’m already feeling like one of your clients.

Gus: One of the most important preliminary reasons that our clients contact me, is that very few agents, brokers, sellers, and business people can determine a realistic asking price for the business and in most instances the real estate also. This unfortunately applies as well to estate evaluations, and court proceedings. During my nearly 30 years of experience in the business practices, sales and buys, we are very strongly oriented in being able to establish a realistic asking price for the business. Setting a selling price in being able to establish a realistic asking price for the business. Setting a selling price that has no relation to the value of the company will scare away even the most serious buyer. A motivated buyer will work hard to find a price and structure that is acceptable to the seller. But there are limits to any deal, and professional assistance in pricing is of the utmost importance in marketing your business realistically.

Editor: What do you think is the most important thing physically I should be looking at in my business when I am placing it FOR SALE?

Gus: Four big words!! Clean up your facility. We all get used to our surroundings. However when a buyers visits a business for the first time, he or she will immediately notice if it is neat or mess. More so than equipment, location, and other items, a clean floor and premises sends a message hence the price. A small investment in fresh paint and a little sprucing up can pay big, big, dividends in price and closing the deal.

Editor: As usual it’s been a fascinating interview, no wonder I come back, your remarks can really apply to all businesses, especially those of the entrepreneur and small businessman who does not have the availability of corporate supervision or shall we say vision. As we end this session Gus, what words would you like to leave with our readers?

Gus: Having experienced professionals involved in the sale of your business is critical. Your local lawyer and accountant or broker may or may not have had experience putting together deals, but as stated in the first part or our talk, it’s hard work in a very specialized area. Find out about available investor databases, networking, working with buyers structuring transactions, and especially helping buyers find financing. Selling your business or any business is a delicate process. GOOD LUCK ON YOUR PLANNING!!!!!