After years of highs and lows, trials and tribulations, you have finally decided you want to sell your business. Well, that’s the easy part sorted. Actually, knowing how to sell your business is a whole different ball game.

A successful exit strategy takes a lot of planning to if you are to secure the best valuation possible and a suitable buyer to take over. Changing business ownership also presents several legal and tax questions.

As Kevin Stokes of City Business Brokers explains,

“Selling a small business is a complex process that requires a specific level of expertise, as well as the ability to solve problems in a practical yet creative manner.”

So, are you looking at selling a restaurant? Maybe you are keen on selling a hair/beauty salon or even selling a cafe business? It doesn’t matter what type of business it is you want to sell, whether you are ready to sell your business immediately, or are just considering a sale, you will need to find practical answers to the basic questions all business sellers ask:

• What is my business worth?
• What kind of financials do I need to provide when I sell my business?
• How do I ensure confidentiality?
• What is the most effective way to find qualified buyers?
• What kind of financing is available to help me sell my business?
• How do I deal with “off the books” transactions?
• How do I screen buyers?

This is where the help and advice of an experienced professional business broker is essential, one with many years of demonstrating to numerous clients how to sell a business.  They have the resources to provide professional guidance for business valuations, buyer financing, exit strategy and planning. Indeed, many sell business brokers are former business owners themselves, so they have experienced the process of how to sell a business from both sides. Their valuable expertise will be crucial as you broker any deal.

Part of establishing what your business is worth, is to assess how appealing your business is to potential buyers.   A business is more than just its assets. Potential buyers will be looking at your staff, revenue, liabilities, reputation and more, which can make settling on a price more difficult.

The Federation of Small Businesses (FSB) recommends considering factors such as:

• Do you have a growing, loyal, customer base?  
• Have your profits been increasing consistently? 
• Do you have a strong position in your market?  
• What is your potential for expansion? 

It is well worth taking the time to make sure your business is in a good position before going to market, so make sure that everything is in order. Organise all your records, contracts, and paperwork, ensure that all your accounts are up to date and that any ongoing disputes have been resolved.

Ultimately, you’ll want to find a balance. You don’t want to undervalue your hard work, however, overestimating its worth can make it challenging to find a buyer at the right price.  Whatever price tag you decide on, you should be able to defend your valuation to interested buyers and be prepared for negotiations.

Take advice from an independent professional broker, they are able to value your business and give you an expert judgement. This is particularly beneficial if you have a niche business or are operating in a specialised sector. The importance of experience and professionalism when choosing a broker to help with the sale of your business cannot be understated, experience dictates that just as every owner is different so is every business, and that there is therefore not a “one size fits all” policy.  

Procedures from valuation to marketing should be tailored to accommodate the requirements of your business. You should expect to be informed and involved in every step of the sale of your business.

City Business Brokers started in 2005, has its HQ in Birmingham in the West Midlands and is headed up by Managing Director, Kevin Stokes. We specialise in serving the buyers and sellers of small business in the Midlands and throughout the UK. Our comprehensive services and resources provide professional guidance for business valuations, buyer financing and exit strategy and planning.

Selling your business is a major decision. Contact City Business Brokers today to get started.