One of the most important first steps when considering the sale of a business is to hire a top business brokerage company. This involves not only finding a business brokerage with a top reputation as an ethical, reputable company but also in choosing the actual broker.
This is such a critical factor because he or she will be extremely helpful in planning all the aspects leading up to marketing your business for sale in Santa Clara County, CA. Without this professional support and assistance, a business owner can end up spending thousands of dollars unnecessarily and missing some essential aspects of the pre-sale process.
The Business Valuation
Any top business brokerage company and business broker will start the process by valuating the business for sale. Valuation is the process of appraising a business based on a specific formula to develop a fair price for sale.
Pricing the business correctly is a key component of the sale. Overpricing the business will have it sitting on the market for a longer period of time, ultimately creating questions as to the reasons for this in the mind of a potential buyer.
Undervaluing the business is yet another problem as it doesn’t allow the seller to obtain the fair market value. However, rarely is a business owner able to accurately valuate their own business for sale. On the other hand the broker will be able to not only give you a market price to consider, but also assist you in timing the sale of the business and preparing the business to have a higher market value.
Possible Considerations
Upon contacting a broker to put a business for sale on the market now or in the future, there may be some areas of improvement suggested by the professional. This often includes putting plans in place that will continue to hold both customers and employees in the business, assuring the new owners that the company will continue on with the same potential for generating revenue.
Formalizing customer working agreements with contracts, increasing your current marketing to bring in new customers, and even more effectively tracking sales and revenue sources is often recommended. This develops a more complete and comprehensive track record for a potential buyer to review when deciding if your business for sale in Santa Clara County, CA is a good investment.
