For small to mid-sized businesses, startups, entrepreneurships or family-owned and operated businesses, getting the most for the sale is often a priority. Putting a Minnesota business up for sale is a big step, and often in represents the move from working for a living to being able to enjoy retirement.
There are, of course, other reasons for putting a business up for sale. Any MN business owner may decide they no longer want the responsibility and pressure of running a business, or there may be a change in the family, in health or even in goals, dreams and interest in running a company.
When considering the prospect of listing a business for sale, there are many different factors to consider. By working with business brokers, it is much easier to time the sale and have the business in the best possible shape to maximize your returns and to lead to a quick sale rather than a long process.
Not a Fast Process
While selling a home is often a very easy task for the seller that takes just a bit of paint, some cleaning and a quick talk with a Realtor, selling a business is a much more complicated process.
Even a very well run and organized business will take about 6 months to prepare fully for a sale. This includes valuating the business, ensuring all relevant financial and tax documents are in order, and providing profit and loss statements, expense accounts and information on all equipment sold with the company.
Failing to have all this paperwork in place, and particularly not having a business valuation, can result in difficulty in finding a fair price that will allow the business to sell for the profit you require in the timeframe you need.
The Market
Knowing not only the local market when it comes to listing a business for sale, but also knowing the market throughout MN or across the USA is very helpful. With this information in hand, you can determine what businesses like yours sold for, how long they were on the market, and if there is a market for similar companies.
Of course, this information can be very difficult to obtain if you are not working with an experienced, connected and high-profile business sales advisor. These professionals can discuss the market specific to your company’s target market and can also talk to you about timing the sale and preparing to put your business up for sale.
