Looking to Sell Your Colorado Business?
Deciding to sell your business is a complex decision and, most likely, one of the biggest financial events in your life. To get maximum value for your business, it’s critical that you have professional representation and know how to properly position your business for sale to maximize its value and mitigate taxes.
Positioning Your Business to Maximize Value
The keys to positioning your business to maximize value include enhancing value, increasing marketability, and ensuring a smooth transition.
So When Is the Best Time to Sell?
Well, it’s a personal decision that includes many considerations, but some good indicators include rising revenue and earnings, being in a favorable tax environment, and having your business properly positioned.
The Sale of Your Business Is a Process, Not an Event
The process includes planning, preparing, marketing, evaluating and negotiating offers, and closing.
Planning makes a difference. The goal here is to reduce the buyer’s perception of risk, anticipate the problems, and then solve them before going to market. Here are nine areas to consider:
- Have Excellent Financial and Tax Records. Use a full service CPA firm. Their help will be invaluable, as timely, accurate financial data is critical to the sales process.
- Assemble an Experienced Team. The team should consist of an intermediary and hopefully one from experienced firms such as the FBB Group, an accountant and tax adviser, a business transaction attorney, and a wealth planner.
- Conduct a Presale Audit. Look at the business from a buyer’s perspective in areas such as accounting, legal, real estate, and first impressions.
- Reduce Customer Concentration. A diverse customer base adds value by creating opportunities for increased sales, reducing risk, and helping with financing.
- Create Second Level Management. A knowledgeable and trusted management team creates value, reduces risk and widens the prospective buyer pool.
- Prepare a Business Plan. A written business plan makes a buyer more comfortable and helps with obtaining financing.
- Make Sure Your Business Has Curb Appeal. First appearances are important and paying attention to the paint, carpet, and clutter in the offices, yard or warehouse goes a long way to making a good first impression.
- Verified Documentation. There is no substitute for proper documentation. Contracts, leases for both premises and equipment, permits and licensing, to name a few, should be part of a well organized and secure data room.
- Identify Intangible and “Off Balance Sheet” Assets. Assets such as intellectual property, skilled and highly trained employees, upgraded equipment, and technology, can greatly enhance value.
So How Can We Help You Through This Process?
We take on the bulk of the workload to enable you to continue with the management of the business. We can:
- Perform a Fair Market Value Business Evaluation
- Prepare a Presale Audit
- Develop a Customized Marketing Plan
- Create a Comprehensive Business Presentation Package
- Identify an Expanded Universe of Potential Acquirers – because if you have one buyer, they are in control. But if you have more than one buyer, you are in control.
- Qualify Prospective Purchasers
- Obtain Confidentiality Agreements
- Negotiate the Transaction
- Manage Due Diligence
- Coordinate the Closing Process with Your Other Advisors
Contact us for a confidential discussion to answer your specific questions, such as:
- What Is My Business Worth?
- How Long Does It Take to Sell?
- What Is the Process?
- What Are Current Market Conditions?
- How Much Does It Cost?
Selling Your Business with The FBB Group
With The FBB Group assisting you in the process, you can focus on running your business profitably, while our business brokers and business intermediaries market, help negotiate, and assist you in closing the transaction. We’ve done this successfully over 1,000 times for businesses located throughout Colorado’s Front Range.
As it may take well over a year to position your business for sale, meeting with our business brokers and business intermediaries in Denver and Colorado Springs well in advance of going to market can significantly improve the results for you. Our initial consultations are complementary, confidential and no obligation. You can call us at 719-635-9000, email us at email@example.com or contact us online.