5 Tips on How to Sell Your Business in Fort Worth, TX for the Best Price
Have you ever thought to yourself, “What is my business worth in Fort Worth, TX?” Are you finally ready to retire? Selling the company that you have worked on for years can be really hard. It’s completely understandable that you want the best for your business, even after it’s sold. This is the best exit strategy plan in Fort Worth, TX because you don’t have someone after you that will be able to take this responsibility and do justice to it. This is why, it is better to get a qualified professional, who will be invested in the business as much as you were.
There are several ways to sell your business in Fort Worth, TX through different exit strategy plans such as acquisition, liquidation, selling it to employees, passing it on to the family, IPO, etc. No matter what strategy you choose, you need to plan ahead of time to make sure that when you will offer the buying party a proposal, you will make a high sale.
What is an Exit Strategy?
An exit strategy does not mean running your business into the ground. What is your goal? Do you want to sell your business in Fort Worth, TX but still have a small say in the dealings or you are hoping that it cements itself in another market successfully? It’s entirely up to you what do with your business but your books tell you what kind of approach you need to take. You cannot simply choose an exit strategy plan in Fort Worth, TX based on what promises the highest pay out. It depends on the type of business you are operating and what you hope to achieve – An outright sale or venture capital funding?
Following are five tips that will help you sell your business in Fort Worth, TX at a high price:
Tip #1
Sell To the Right Owner, For the Right Reasons and At the Right Time
Don’t decide to sell your business in Fort Worth, TX just because you think you are too old to handle this kind of responsibility anymore or if you fall ill. Those are “never” the right reasons to sell your business in Fort Worth, TX! Never show signs of weakness in front of the buyer because they can use this as leverage. A decision as big as selling your business should never be thought about emotionally. It all works on statistical data and a help handing extended towards the buyer, so that they can transition into the business easily if they plan to keep the current operations.
The first thing that most buyers ask the seller is, “Why are you selling your business?”
Often people reply with something flippant such as that they can’t handle the pressure or they don’t want to work anymore. This is not the right answer! This makes the buyer suspicious and they delay the deal, in search of a better deal. Some of the best answers can be:
I am looking for a better opportunity.
I would like try my hand at a different market to expand my experience.
I have achieved what I wanted to and now it’s time for me to retire.
Tip #2
What Are You Planning To Sell
When planning an exit strategy, you need to make a list on what you are planning to sell. A business’s assets are divided into two categories – Tangible and intangible assets, which include:
- Client list
- Goodwill
- Brand recognition
- Trademarks
- Land
- Equipment and machinery
- Inventory
The amount you get from the sale depends on the quality of these assets. All buyers require you to show your account books, so that they can determine the worth of your assets. Of course, you won’t receive the exact amount that you invested in the tangible assets but the intangible ones can bring you a nice profit.
There are two ways you can go: Make an asset sale where you sell everything except the company and its name or share sale, where everything is sold. As a good gesture, you can add in the contract that you will help the new owner in navigating the business in the first few months.
Tip #3
Calculate Your Company’s Worth
This is the most important and difficult part of an exit strategy plan in Fort Worth, TX. You need to make a thorough report from the day your business made its first earning to its last. It’s better to hire an auditor for this process, so that they can provide you with a detailed and organized account. If you have saved the receipts from all your sales, then this part of the process will be quite easy. You can also hire a professional valuation broker, who will direct you in choosing the right valuation method amongst future maintainable earnings, asset based, discount cash flow, etc. Then there’s the current market trends that you need to keep up with.
On paper, a valuation done by a professional will help you represent the statistical data that will convince the buyer of your business’s worth. This will give you an upper hand in the negotiations stage.
Tip #4
Keep Everything in Order till the End
One of the biggest mistakes that most sellers make is that they neglect the business when they have decided to sell it. Remember, there’s still a possibility that the buyer might back out if he finds out that in the last few days, you have been shirking your duties.
Keep everything up to date, even to the day when you are finalising the deal with the buyer. Remain with the buyer the entire day to show him around after the ownership has been transferred. Make sure that all your taxes are paid and the liabilities have been taken care. Do not leave the buyer hanging for a permit, in case he decides to bring in further equipment or machinery. The more attractive your pitch and books are, the more the buyer will go easy in the negotiations.
Tip #5
Seek out a Professional
There are several companies out here that will help you sell your business in Fort Worth, TX. To get the best price for your business, you need a professional business intermediary, broker, CPA and transaction attorney. These people will help you think strategically rather than emotionally. Their valuations will be more credible and will show the buyer that ‘you mean business’.
Take as much time as you want before you sell your business in Fort Worth, TX. Use all the professional resources you can think of because they will help you in selling your business successfully.
Looking for a professional who will help you with your exit strategy plan in Fort Worth, TX? Then, contact Kirksey Business Brokers and get in touch with their brokers. With the help of their advanced valuation techniques, get the best price for your business now. To know more about their services, call at 817-637-1508.