How to Sell your Business Quickly

Many people approach us and want to know how to sell their business as fast as possible.  What is our answer?  It depends.  There are several factors that are going to drive the speed and price at which you sell your business.  In this article, we will walk you through those factors.  

What makes a business sell?

Talk to a valuation specialist about how they price businesses and you will begin to get an idea of what

Supply and Demand

How well is your business prepared?

Price, Price, Price. This probably goes without saying, but price counts.  As we discussed above, most savvy buyers will be looking at your business and other business opportunities at the same time.  Assuming that your business presents the “perfect opportunity” for them – earnings potential, location, life style, etc. – you must understand that you are still competing against others that are almost a perfect opportunity.  As such the discriminator becomes price.  

In the end, this is the single most important factor that you must weigh when you are looking for a quick sale.  How do you weigh it?  The price you ask for your business must make sense as it relates to:  your revenues, your earnings, your future sales projections, your vendor relations, your lease situation, etc. If you look at all of these factors and arrive at a fair market value (FMV) – or better yet have a specialist do it – then you need to make some rational decisions about discounting that price.  

A good rule of thumb is that you should be 20% less than FMV if you are looking to execute a so-called “quick sale.”  Of course there are no hard and fast rules here, but the bottom line is that you need to attract the attention of buyers and get them to commit as quickly as possible.  

Other Incentives. Other than price, what else can you do to make your business attractive for a quick sale?  Consider the things that might be easy for you to offer.  One example might be an extended training period for the buyer.  Others include:
-    Extending a greater amount of seller financing
-    For franchises, cover the expense for the buyer’s franchise training
-    Offer better terms on your inventory
-    Allow you broker to announce your sale (as opposed to doing it confidentially)
-    Buyer's Return On Investment

Register Now to speak with a CRB professional regarding selling your business. 

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