Business Brokers Alexandria VA
There are specific steps to take if you want to buy and sell a business in Alexandria, VA. If you’ve received an offer from someone interested in purchasing your company, a business broker can help you capitalize on that deal while protecting your business.
Selling a business doesn’t have to be an emotionally draining process. With the right preparation, patience, and experienced intermediaries working on your behalf, you’ll be able to get a feel for what your business is worth and who’s prepared to buy or sell it.
Business brokers can help ensure that the reason for the sale, your level of preparation, the advisors you’re working with, and the buyer you choose matches your requirements and goals.
If you’re interested in learning more about the steps to brokering a business in Virginia, keep reading. Or, if you’re ready to speak with the skillful Alexandria business brokers at A Neumann & Associates, LLC, contact us now for a consultation.
Step 1: Get Ready For The Sale
There are several reasons why a business owner might sell their company. Generally, the most common reasons owners sell their businesses are burnout, health issues, retirement, divorce, or they’re ready to move on and try something new.
Developing a plan for what you’re going to do after the sale of your company can make the sale run more smoothly. Sometimes that means moving on, focusing on other things, or giving back to your local community.
When preparing to sell, business brokers focus on the factors that display the real value of your company, like:
- Growth rates of the business
- Competitve advantage
Selling a failing business will be less attractive to potential buyers and harder to do. However, it’s not impossible, and with the help of an adept business broker in Alexandria, your dreams of selling or buying your next business can become a reality.
Step 2: Determine Asking Price
Many small businesses sell for 2-6 times their profits. However, this all depends on the business’s profitability, size, industry, type of buyer, and other factors. Most business owners determine their pricing by creating a ballpark price range on their own, paying for n accredited, certified, third party business appraisal, or employing a business broker to perform a business value estimate.
Brokers or appraisers can help you to analyse your financial statements, tax returns and recast your financials to give prospective buyers a better understanding of the company’s cash flow.
Once a valuation is complete, brokers and business owners can collaborate how to price the business for sale in the market. Doing your due diligence with the help of a business broker can help you decide if now is the right time to sell. Brokers can help you decide how to handle your companies’ real estate as well.
Step 3: Listing your Business with a Broker
When the time comes to sell your business, enlisting the help of a qualified business broker can help you achieve your goals. Quality brokers provide value throughout all steps in the sale of your business.
We recommend searching for business brokers based on their experience and accreditation.
The IBBA (International Business Broker Association) is the largest community of business intermediaries in the United States.
A Neumann & Associates, LLC is a professional mergers & acquisitions advisory firm, having assisted business owners and buyers in the business valuation and business transfer process for the past 30 years.
Step 4: Documentation
Gathering and preparing your documentation in advance could help you reach more potential buyers and sellers even faster.
An experienced business broker can securely store sensitive information and track buyer activity online. Here are a few items worth gathering in advance to give yourself a better chance of selling your business more quickly and efficiently:
- Corporate governance documents
- Financial records
- List of equipment
- Permits and licensing agreements
Step 5: Find a Deal
If you want to get the best price and terms for your business, enlist an experienced Virginia business broker to handle the deal. Your broker can prepare professional marketing materials to help buyers understand your business.
The blind profile they create can give potential buyers enough information without providing too much information or breaking confidentiality so that they will inquire about the opportunity.
Business brokers can set up an intro call as well as arrange in-person meetings for potential candidates. If you’re not receiving enough offers for your business, contact the professional business brokers at A Neumann & Associates, LLC today.
Step 6: Accept The Deal
Before you decide on a deal, your broker can help you review your goals so that you’re getting the deal you’re most comfortable with. Throughout the deal making process, you may come across the following documentation:
- IOI: Indication of Interest. This is a non-binding document that covers the basic financial terms of a deal.
- LOI: The Letter of Intent is a document describing the intentions of the buyer in a potential purchase.
- OTP: Offer-To-Purchase, which is the most preferred document to establish the basic terms for a deal
- Purchase Agreement. The final, definitive, and contractual agreement between you and the buyer, drawn up by a licensed attorney
It’s important to have a good lawyer and business broker review your documents. Speak with A Neumann & Associates, LLC in Alexandria, VA for assistance today.
Step 7: Due Diligence
During Due Diligence, the buy-side and sell-side work together to complete the purchase agreement. Some buyers negotiate during due diligence to reduce the price or attempt to improve the terms of the deal in their favor.
Step 8: Closing The Deal
At the end of the business brokering process, you’ll meet the buyer, attorneys, and your broker to sign all of the required closing documents. Once you’ve received the funds from the sale, you can celebrate the successful sale of your business.
Selling a business is a long journey. Getting the best deal while retaining confidentiality and preparing for the future takes resolve and time. Selling your business will require you to be emotionally and financially prepared. Following the steps outlined above and working with an experienced business broker in Alexandria can help you get the most out of your deal.
Contact A Neumann & Associates, LLC
If you are considering selling your business, please contact us to learn more about our comprehensive service spectrum. Our experienced professionals will answer all your questions about selling a privately held business in complete confidentiality. Please to fill out a short form, or call us at (732) 872-6777. We will contact you directly and will never identify ourselves to your employees.