Putting Up Your Small Business for Sale in Bedford, TX? Here is Some Advice!
So, you want to sell your business to a competing firm in Bedford, TX. Whatever your reasons are, be it retirement, a new and better business opportunity or just exiting from the industry, the process is hard, difficult, and can get out of your hands, if you don’t proceed with care. You may think that this is similar to a typical sale process, but you are so wrong. Putting up your small business on sale in Bedford, TX is challenging.
But fret not, we at Kirksey Business Brokers, have been selling businesses for so many years, and doing quite a successful job in Bedford, TX. We can help you too, like we have helped others before, so do reach out to us if you want to sell your business.
That being said, we have some great advice for you. Be sure to follow what the expert business brokers at Kirksey suggest, if you want to sell your business and get the best possible deal in Bedford, TX.
Keep your emotions away
If you want to sell your business in Bedford, TX, your competitors are one of your best bets. Yes, you might not like them for so many reasons, and would have a number of issues with them. But think about it in a cool state of mind. Competing firms always try to get more customers and market share their way, and they would do this, even if it means paying a price.
From what we have seen during past sales, the best and highest-priced business deals are generally made with competing firms.
Proceed ahead care
Common sense, but we still put it on the list to emphasize the importance. Whenever a competitor shows interest in your business, you should be extremely careful about what you share and what you don’t. After all, there are firms who just use this opportunity to get more information about your business. So, refrain from sharing this until they show their seriousness.
Ask the firm to give you some background information prior to you sharing any details. This would help you evaluate if they can finance the purchase.
Try to know your potential buyers well
Try to know your prospects first before you share any critical information. Generally, if you are trying to make the deal work out with a big company, they would be less likely to cheat. Why? Because there are so many people involved, and if any one of them breaks a rule, they are fired for sure. Big firms never risk their reputation, and would even destroy information that you provide them with, if the sale is unsuccessful.
However, you should be more careful when less reputed firms are involved. These firms don’t have any strict rules; in essence, it is just about their morality and ethics. And if these are questionable, find another buyer.
Get a Non-Disclosure Agreement (NDA)
If you want to sell your business to a competing firm in Bedford, TX, you should definitely ask them to sign a Non-Disclosure Agreement. Why? Because during the sale process, they will gain access to sensitive information and trade secrets. So, if for some reason, you don’t sell your business to them, the NDA would prevent them from using any of the information. And if they still do, you can file a lawsuit against them.
How do you prepare an NDA? Reach out to us, and we’ll help you with it.
Obtain a nonrefundable deposit
When you take a nonrefundable deposit from a competing firm, it ascertains that they are serious about buying your business.
Don’t share any customer information until the very end
Your customer lists are critical, and you should not share them until the deal has been finalized. If any potential buyer asks for some information, you may share a few names, but don’t give away too much, and definitely, don’t share contact details for any of your customers.
Get a business valuation done
Business valuations determine the worth of your business, and accordingly, let you set a suitable type. Valuations can be done through several methods such as market approach, income approach or the cost approach, and help you judge which deals would be the best for you.
Consider due diligence to be the most important phase
Due diligence is the first phase of a business sale. During this phase, both parties examine each other’s ability and come up with protective strategies for preventing surprises after the deal has closed. Since this is important, you should put in a lot of time, and make sure you get it right.
Ascertain that you are ready to sell your business
When you approach competitors in Bedford, TX, instead of them coming up to you, they know instantly that you want to sell your business. And so, they will try to pay a lower price. If you think, this is lower than the worth of your business, don’t be scared to walk away.
Your competitors would also want to see your financial statements and other necessary documents. So, keep them ready before you approach any firm.
And lastly, this is not going to be immediate. There is going to be a transition phase, and you may have to work with the potential buyers for some months, before you can completely exit.
Make the most out of the deal
Financial terms matter the most when you sell your business in Bedford, TX, but some other things are important as well. For instance, would you want to stay on as a consultant in the newly merged company? What about your existing employees: will they be able to work or get sacked? Also what about the debts and other open business expenses?
Ponder over all of these questions, and then finalize the terms of the contract.
Please reach out to Kirksey Business Brokers in Bedford, TX, if you want to maximize sale and get the possible deal.