“BizBuySell.com the Internet’s largest business-for-sale marketplace, reported today that small business transactions reached record levels in 2014 as brokers reported the highest number of businesses changing hands since BizBuySell started tracking data in 2007. The full results are included in BizBuySell.com’s 2014 Insight Report, which aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide.”
Small business transactions increased at record levels in 2014. According to BizBuysell, the buying and selling of small businesses increased over 6% in 2014, compared with 2013. This growth was attributed to a combination of improved small business financials, retiring Baby Boomers and an increase in the number of qualified buyers entering the market.
Improved conditions also allowed sellers to ask for and receive more money for their businesses. Service businesses led the pack with 40% of recorded closed transactions in Q4 2014, followed by retail at 30% and restaurants at 22%.
You’re off to a great start when your business-for-sale listing starts receiving inquiries from interested buyers. Yet, finding the right buyer and closing the deal may not always be a fast and easy journey.
Communicating with potential buyers online can be frustrating and challenging. Not only is it important to eliminate unqualified buyers, it’s also important to pique the interest of serious buyers and persuade them to meet with you in person.
For Vicky Ismail, small business ownership has always been a way of life. Growing up, her parents owned a series of restaurants and bakeries, laying the groundwork for entrepreneurship later in life. Her husband, Abdul, also has a business background and after they were married, they wasted no time planning and creating small businesses of their own.
Their first endeavor included part-ownership of a successful mall food court business. Soon after, they sold their portion of the business to open a pizzeria in Florida. Then, after 13 great years, they sold the pizzeria to their employees and moved to North Carolina, where The Cary Café was founded in 1995.
One of the most common frustrations in selling a business is attracting qualified buyers – those who are ready to make a purchase and are familiar with the business buying process – as opposed to unqualified buyers. Those “lookie loos” and “tire kickers” will do nothing more than waste your time. This can be especially difficult when confidentiality is important and you must market your business without alerting employees, vendors, suppliers or competitors. In order to overcome this, you must create a business for sale ad that is well-written and includes pertinent information that will both filter out unqualified buyers and stand out to those who are serious about buying a business.
Here are 5 reasons why your business-for-sale ad may be getting overlooked by qualified buyers:
BizBuySell receives over 1.4 million visits each month from active business buyers and sellers – an ideal opportunity for brokers to market themselves and gain new clients. Not only does your BrokerWorks profile allows you to promote yourself to prospective clients, it distinguishes you from other brokers. What someone does or doesn’t see in your profile can make all the difference in their decision to select you to represent them versus your competition.
Here are 5 must-do’s for a winning BrokerWorks profile that’s both powerful and informative:
You’ve worked hard for many years building a successful and profitable business. Now, as you prepare to sell your business, the big question is: How much is it really worth? According to The BizBuySell Guide to Selling Your Small Business, what your business is most likely to sell for is based on a buyer’s assessment of financial statements, industry comparable sale figures, asset values, return on investment, and the goodwill worth of your business as a going concern.
Following these 6 key steps will get you on your way to setting an asking price for your business:
Step 1: Get Your Financial Statements In Order. Consult with your accountant or bookkeeper and put together the following key financial statements:
- Income Statement – This should show your gross revenue, costs, and how much your business made or lost each year.
- Cash Flow Statement – This should show how much money was received and paid out of your business and how business assets changed as a result.
- Balance Sheet – This should show the value of all tangible assets owned by your business less the liabilities your business owes.
- Seller’s Discretionary Earnings Statement – This should show how much your business makes after backing out non-recurring and discretionary expenses.
Original post on Inc. by Curtis Kroeker
The sale of a business is a major milestone for an entrepreneur. In fact, your exit-strategy probably has been top of mind for months, even years, and you’ve had ample time to process how the sale will impact your personal and professional life.
But your employees? Not so much. In fact, they’ll be shocked to learn that they will soon be answering to a new boss.
As a compassionate business owner, you want to help ease the transition for your workers. But telling them that you’re planning to sell before a transaction is complete could jeopardize the timing and price of your deal.
So what do you do?
Although there may be unique circumstances that require you to inform all employees about your sale intentions early in the process, it’s almost always better to wait until the deal has closed to bring your employees up to speed.
Read the full article on Inc. here: http://www.inc.com/Curtis-Kroeker/how-to-tell-your-employees-about-a-sale.html
By Curtis Kroeker in The Business Journals | November 4th, 2013
When selling your business, you have the option to either sell it yourself or hire a business broker. Though selling your business is possible, hiring a broker will often ensure a smooth sale and transition from ownership.
“Unlike many small business owners, brokers have years of experience in selling small businesses. They know what works and what doesn’t, making them extremely helpful when Read more
BizBuySell.com Insight Report shows significant spike in business sales for third straight quarter with restaurant, retail industries leading growth.