Tips for a Successful Sale of your Business in Richmond

November 2022

When you decide to sell your business, there are a few questions to ask yourself that will guide your next steps. Followed by more questions, then more questions… you get the drift:

• Why am I selling? - Will I continue to work or leave the business?
• What am I selling? - Am I selling the whole business or a part?
• What is the company worth? - How will I come up with a price?
• Where do I find a buyer? - Will I transition the business to family or an associate? - Or will I find someone outside to buy the company? 
• When is the best time to sell? - Should I sell now? - What if there are better times than now? 

Are you overwhelmed before you get started? Here are some tips to help:

1. Hire a team of professionals to assist you with an actionable plan. 

Protect the asset you have spent years building. First Choice Business Brokers - Richmond assists many sellers like you every year. Our advisors work closely with all the professionals you need, lawyers, bankers, accountants, real estate, and insurance brokers. Together we protect your best interests moving forward to a successful sale and transition. We offer a marketing program that attracts qualified buyers. FCBB understands the complicated process - that's what we do while you focus on day-to-day operations.

2. Provide accurate numbers.

It's well worth the effort to have financial books well-prepared and up-to-date. Transparency of financial records is a given. The buyer has a right to accurate accounts of your profit and loss. Your financial statement should be complete with 2-5 years of your business' income statements. Tax statements and real estate information are helpful, as are any liabilities. It is a buyer's due diligence to request and verify all information. The more transparent and organized you are, the better. Providing a buyer with your business plan and budget will demonstrate a well-organized business. 

3. Determine real value. 

We emphasize the importance of an accurate valuation. Overpriced or underpriced will either turn buyers away or encourage unqualified buyers. A business with the wrong valuation often sits on the market for too long, making good buyers suspect something is wrong. Consider offering a reasonable down payment and seller financing to facilitate a quick sale. 

4. Optimize value

Entice buyers by demonstrating your business's value. Make your package as attractive as possible, but remember to offer a fair price. It is an excellent idea to reduce high costs and unnecessary expenses before selling.

5. Work to optimize your customer base 

Before selling your business, offer your customers promos, discounts, and special deals.

6. Provide a clean, safe environment. 

Keep day-to-day operations in top-notch performance mode. A clean, safe premise is attractive to a buyer. 

7. Optimize the Business's Online Footprint.

Remember that your presence online is as significant as your brick-and-mortar. You would never consider buying a business with no signage or electricity—being visible on search engines and social media signals that you are open for business. You will demonstrate your brand authority and a significant online presence with unlimited reach to your customer base. First Choice Business Brokers - Richmond can connect your business with a digital marketing agency to enhance online performance. 

8. Focus on running your business. 

Staying viable and operational is essential. Any sign of neglect or abandonment will signal desperation to a buyer, who will use that impression to devalue your business during negotiations, and it's a difficult argument to win. A buyer is looking for a successful vision of ownership. Seeing it operational provides that vision.

9. Keep the sale of your business confidential. 

You want to avoid spooking customers, suppliers, or employees with the uncertainty that prompts rumors. Customers, suppliers, and even employees will distance themselves when you need stability and efficiency amongst the ranks. 

10. Get to know the buyer.

Establish a good rapport with potential buyers. FCBB-Richmond takes pride in its ability to match sellers and buyers for the best fit. We eliminate "tire kickers" who are not qualified buyers. However, it is still essential for you and the buyer to be confident and trusting of each other. 

11. Hire First Choice Business Brokers in Richmond.

i) Our advisors protect you from becoming overwhelmed and frustrated with the demands of selling while still running your business. 
ii) We protect your interests at every stage of the sales process. And connect you to the professionals you need at the right time for advice, preparation, and legal transactions. 
iii) With an accurate valuation, and being well-prepared, we go into negotiations confidently to close the deal and facilitate a smooth transition.