Small business administration

My neighbor asked me, “Why would anyone sell a successful company?”. He could not understand why anyone would leave a business that was doing well. Of course successful companies get sold all the time.

So why do these business owners sell? The short answer is that most closely held businesses sell for human reasons, such as burn out, retirement, illness, partnership disputes, family issues or other personal reasons. Usually the business is fine but the human being running the business needs a change. To understand this better it is key to understand the other options for exiting a business.

Closing a business that is profitable never makes sense. Even if the assets are liquidated the price is likely to be pennies on the dollar versus selling the business as a going concern with employees, customers and a reputation that is intact. Not only does the business owner get the lowest value but the employees, vendors and customers are hurt by this type of exit.

No one wants to exit their business this way, but many do. The loss of an owner not only creates tremendous issues for the family but also creates a leadership void in the business. Even the most competent management can struggle when a key business leader is lost to a serious accident, illness or death. No one plans for this type of exit but many end up exiting the business this way because they failed to create an alternate plan.

Succession by a family member or key employee has its benefits. They know the business, its product or service, employees, customers and vendors. Succession can be operationally successful for the exiting owner if they make sure the successor is carefully selected, qualified and groomed for the position. The owner must be careful not to make an emotional choice of a relative or favorite employee but instead choose the successor with the right skills to lead the company into the future. You are not seeking an “Employee” mentality but an “Owner” mentality. If that rare person can be found in the business who can make the transition to Owner, they often do not have the cash needed to purchase the business. They are also likely to want to pay less for the business as familiarity will blind them to many of the value drivers of the company. So although succession can be operationally successful it is rarely a financial success for the outgoing owner.

Closing or liquidating the business minimizes the value to the owner. Accident, illness or death forces the issue on the owner. Succession provided a very limited pool of options with limited financial reward.

Selling on the other hand allows the business owner to decide their ideal timing, maximize the value of the business they worked so hard to build, coordinate the use of the sale proceeds for financial planning and align their personal goals with the sale of a business. Selling the business allows the business owner to create a wealth event and often significant on-going passive income without having to run their business.

Whatever they are, human reasons are always pushing and pulling on a business owner. Burn out, stress, divorce, illness, partner disputes and limited growth capital are some of the human reasons that push owners out of the business. Retirement, enjoying life, relocating, a new business opportunity and passive income are some of the reasons that pull a business owner out. Whatever the motivation, the fundamental reason a business owner chooses a sale as their ideal exit plan is control. The business owner chooses to understand the value of their business and to proactively pursue the right buyer and the right price. By selling a business you choose to exit your business by choice, not by force.

The professional team at Sunbelt Midwest can help you confidentially sell or buy a business in Minneapolis, Milwaukee, Chicago, and surrounding areas. For more information check out our site at http://www.sunbeltmidwest.com.

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Comments (0) Oct 12 2011

You’ve spent nearly a year, perhaps years, putting everything you have into building a thriving, high-demand online business and now you have chosen to sell your baby.

Thousands of businesses change hands everyday, oddly enough the channels you may use to get maximum price and exposure for your are incredibly limited.

1. Ebay. It’s perhaps the most significant venue for listing and finding new businesses forsale, but you have to be concerned over the standard of sites listed on eBay. For every quality site listed there are at the least 100 crappy, low-priced, cookie-cutter sites that can put the wrong impression inside minds of your prospects.
2. Classified pay-per-listing sites. The leading online organization listing site is http: //www. buysellwebsites. com run by experienced professional Nelson Bates. This is the super service for sites under , 000 with proven results and established demand. A great technique for lower-priced sites, but perhaps not the right option for the site you wish to get maximum exposure and price for.
3. Experienced and Focused Business Specialist. You’ve invested heavily in your . A professional can help you over the sometimes complex tasks of placing a price on your business, getting it while you’re watching “right” buyers, helping to separate the tire kickers from serious buyers and take your deal with an optimal close.

1. Get more money for your blog
2. Get your site exposed to buyers with money
3. Reduce your stress by only putting you touching serious buyers
4. Handling the paperwork and forms associated with securely selling your high-value business online
5. Handling the uncomfortable “selling” role for you – you just decide which deal to take
6. Let you move on to other things, confident that your business online is being represented by the best
7. Help you through an emotional process – they shall be your rock through the entire process
8. Give you the benefit involving experience closing many deals, something most sellers do not have
9. Open up new markets and opportunities you possibly will not have even thought of yet
10. Help you wade through legal, tax and regulatory issues that could be quite intimidating.

Finding a great business broker can make a massive difference to the success of selling websites, getting the value you deserve.

1. Experience with selling businesses. This one tops the list. Skillful business brokers have spent years mastering the art of negotiation and undersatnding the market industry. If you are selling an online business, then it is even more essential that you find a specialized online business broker, someone who understands getting maximum price tag for internet-based businesses.
2. Proven Reputation. You want someone who has a new rock-solid reputation with years of experience helping sell businesses. The ideal business online broker will have sold hundreds of online businesses already and can talk about some specific examples.
3. Great Communicator. Selling your business can be a prolonged and detailed process, in order to get the most out of websites broker, they need to be a great communicator – it’s absolutely needed.
4. Must Ensure Your Confidentiality. You can’t afford to have your buyers, partners and competitors know that you are about to sell your organization. Look for a broker that guarantees confidentiality using appropriate protection forms every step in the way.
5. Specialize. Focus on a business broker that understands your sort of business. Just as you wouldn’t go to foot specialist about your tummy problem, you want to make sure you find a broker that concentrates on online business.

Finally, you can take the stress out of selling websites by using an experienced, professional online business broker. Don’t leave the sale of your respective business to chance, consider consulting your very own online business broker right now.

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Comments (0) Oct 06 2011