March 7, 2020
Top Five Owner Concerns When Selling A Business
By Jeremy Albelda
‘I have made the decision to sell my business. I have built the business over my whole career and it is the biggest asset in my portfolio. What are some of the concerns I need to worry about throughout the business sale process?’
“These are the some of the key concerns for many business owners,” says Tony Valentino, Managing Director at A Neumann & Associates, a New Jersey based mergers & acquisitions and business brokerage firm with multiple offices along the East Coast. “In the following, we will address some of these concerns.”
Is my business ready for sale?
The owner is worried that he/she doesn’t have accurate and up-to-date financial documentation, peak profitability margins that are sustainable, lease issues, client concentration and employee retention issues. These items should be addressed prior to putting the business up for sale.
Fear of breaching confidentiality
The owner fears word getting out that the business is for sale. It is important that clients, employees and suppliers are not aware of the possible sale of the business. That is why it is important to have the right team in place that will maintain confidentiality throughout the whole process.
Do I have the right team in place to advise me with the sale of my business
Seller is worried that he/she doesn’t have the right consultants in place to guide them during the whole process. The team should be made up of a reputable Business Broker who will coordinate an independent certified business valuation, a qualified CPA/Tax Advisor that has experience in Mergers & Acquisitions, and an Attorney that is also experienced in M&A transactions.
How do I run my business while I am trying to sell it?
You should run your business like you will own it forever. This helps put you in a stronger negotiating position. It is important to maintain continuous growth throughout the sale process. Don’t take your foot off the pedal. Owners are often worried that the sale process will consume too much of their time and it will take away from running the business. That is why it is important to have the right team in place to offload some of the issues that arise during the sale process.
What happens once my business is sold
Often, a seller thinks that once they have handed over the keys at the closing table that they are no longer involved in the business. However, it is important to the buyer’s perception of the business that the seller will stay involved in the business during an agreed upon transitional period. This time period can be up to six months at no cost to the buyer normally. Usually, it is at a reduced role and sometimes part of the period is just phone consultations. It gives the buyer comfort in the investment they are making.
About A Neumann & Associates, LLC
A Neumann & Associates, LLC is a professional mergers & acquisitions and business brokerage firm having assisted business owners and buyers in the business valuation and business transfer process through its affiliations for the past 30 years. With an A+ Better Business Bureau rating, the company has senior trusted professionals with a deep knowledge based in multiple field offices along the East Coast and has performed hundreds of business valuations in its history. The firm’s competitive transaction fees are based on successfully completing transactions. For more information, please contact A Neumann & Associates at 732-872-6777 or email@example.com
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