Author: Craig Lawson

Why Rising Interest Rates Make It More Important Than Ever To Use A Business Broker

Interest rates are higher than they have been in years, and these rising rates have affected many business areas. With technology companies, telecommunications businesses, and small businesses being hit hard by high interest rates, many business owners want to sell their businesses before the economy worsens. If you’re trying to sell your business now, contacting a reputable Georgia business brokers should be your first step, because a business broker can help you sell your business during the current economic times.

How can high interest rates make it more difficult to sell your business?

High interest rates cause a number of problems for owners looking to sell their businesses. When interest rates are high, borrowing costs are high, too. This can make it difficult for your business to get financing. Because many customers decrease the amount of money that they spend during times of high interest rates, businesses can also see their profits start to shrink. These complications could make your business unattractive to potential buyers who consider these risky investments. In fact, you may have such difficulty finding a buyer for your business that you are tempted to lower your prices. But, before you do that, it’s important to understand how a business broker can help you.

How can Georgia business brokers help you sell your business?

Georgia business brokers such as The Business House can provide you with a number of services that will aid you in getting the best deal for your business despite the state of the market. The first thing The Business House will do is offer you a complementary value assessment to help you understand what your business is worth. Then, we will use our in-depth knowledge to expertly navigate the complex market and find you the right buyer. We will also screen any potential buyers to ensure that they are qualified to purchase your business before sharing any confidential information on your business. Finally, we will use our unparalleled negotiation skills to help ensure that you walk away with the best deal possible. Whether you need help with selling your business in a difficult market or are interested in our expert exit planning services, contact The Business House today to learn more about our business broker services.

A Guide for Determining a Reasonable Price for Your Small Business

There is a considerable difference between determining the value of a privately-held company and a publicly-held company. Topping the list of considerable differences is the fact that privately-held companies do not have audited financial statements. When owners of privately held companies are thinking about a potential sale, one of the most important factors to consider is business pricing.

Determining how much the business is worth can be a challenging yet important task to ensure both the seller and buyer can agree on a fair price. This long process includes looking at existing income statements and tax returns, physical assets, debt, liabilities, trends in revenue and expenses, market competition, and any other influencing factors that could affect the value of the business. Let’s take a look at how the owners of privately held companies should proceed in this process of establishing a reasonable price for their company and how business brokers can help along the way.

Private vs. Public Company Costs

An audited financial statement is a costly endeavor. In order to avoid the cost, many companies simply don’t go public. Of course, it should be noted that publicly held companies, as the name indicates, reveal much more about their finances than their privately held counterparts do. Privately held companies are often seen as being more mysterious whereas publicly held companies are considered more “open.” This gives private companies more flexibility in terms of pricing, which can allow them to potentially yield a greater profit upon the sale of their business.

Determine a Price for Your Business

Business owners looking to sell their business will, of course, want to address the fact that their company lacks the public information associated with publicly held companies. Providing prospective buyers with as much verified information about your business as possible is one of the fastest and easiest ways to overcome buyers’ concerns. A smart move for any business owner is to work closely with their accountant to go over the numbers and create an easy-to-understand presentation for prospective buyers. This should serve to allay many of their concerns.

To ensure you receive a fair asking price, it is helpful to enlist the help of an accountant or other financial advisor who has familiarity with the current pieces of your business and its valued assets. The estimated worth of your business should take into account factors such as recent sales figures, prospective buyer demand, expected future earnings, the appraised value of inventory, land, and buildings, depreciation rates, and net book values. You need to find the perfect balance between setting a competitive yet realistic financial goal. It can pay dividends in finding interested buyers quickly and getting the most for your finances when selling a privately owned business.

Working with your accountant is only the first step in providing prospective buyers with the information they need to feel comfortable. The second step is to work with an outside appraiser or another expert who can determine the value of your business. After that, you’ll want to decide on what your market price will be, as well as your “wish price,” or the price that you would ideally want. You should also determine your “rock bottom” lowest price. You, as the owner, need to have this information ready to go as it will greatly facilitate and streamline all negotiations.

Appeal to Buyers

When pricing your business, it is important to remember that the buying market will be weighing its options carefully. They need to feel like they are getting good value and that participating in this business transaction will benefit them. Work hard to make sure your pricing appeals to potential buyers and what they value. Otherwise, potential buyers may shy away from a possibly great opportunity due to an unappealing price point. When buyers are reviewing materials and working to determine what price they are willing to pay, they will look at a wide range of factors including:

• – Product diversity
• – The size of your customer base
• – Potential competitors in the area
• – Competitors on the horizon
• – Potential disruptions to your business, such as supplier problems
• – The stability of your earnings
• – The stability of the market
• – Need for capital

Different buyers may place differing levels of emphasis on certain areas, but you can be certain that the aforementioned areas will be examined with care. The process is undoubtedly rather complex. This complexity underscores the need for professional assistance and the perspective of others.

How to Achieve the Best Price for Your Business

Ultimately, the market will determine the sale price of your business. For business owners, the first and most important step is to work closely with professionals such as accountants, appraisers, Business Brokers, and M&A Advisors to establish the price of your privately held business. You can count on business broker professionals to help properly organize the facts and numbers that support that price.

Consult Business Brokers for a Smooth Transaction

Hiring a business broker has many advantages for the individual, or company, looking to buy or sell a business. Working with an experienced broker can save time and money during the transaction process and increase the chances of getting the best price possible. Brokers possess valuable market intelligence that allows them to provide clients with up-to-date market trends, perform competitive analysis, and showcase businesses appropriately. With their expertise in valuation and negotiation, they can help find potential buyers, evaluate offers, and secure a successful closing. Additionally, brokers simplify legal paperwork by ensuring its accuracy and comprehensiveness.

Trusted Georgia Business Brokers

The Business House, Inc. is a one-stop shop for all industry needs related to business transitions with over a century of experience in the field. We put emphasis on confidentiality when negotiating transactions to ensure utmost privacy while providing unmatched results. Our talented team of Georgia business brokers is ready to assist with the daunting task of selling your business. With assistance from our experts, setting a great price for your business will be a much less stressful process.

The Best Time To Sell Your Business

If you’re a business owner, you’ve probably become very attached to your business. After all, you’ve built it from the ground up, transforming something that was just an idea into something very real. That’s why considering selling your business can be a daunting idea. There’s so much to take into account for something that you care about so much, it can be difficult to know where to start.

One of the first questions when thinking of selling is often when to sell your business. The truth is that the perfect time to contact a business broker about selling is different for every owner. So, how do you know when to sell your business?

When To Sell Your Business

There are several ways you can tell if it is time to sell your business. The market may be good, you may be daydreaming of other adventures, or you need more personal time. Each of these factors in your industry and personal life can indicate that it’s time to sell. Whatever reason you decide to sell your business, contacting a professional business broker can help ease the selling process while aiding you in getting the deal you deserve.

The Market Is Good

One of the most important signs that it’s time to contact a business broker about selling your business is that the market is good. Many business owners waste years waiting for the “perfect” selling market and end up holding onto a business they don’t want for a long period of time. While you don’t want to do that, it is essential to think about the status of the market before selling.

If the market for buying businesses in your industry is good, that might be a sign that it’s time to sell and move on to your next opportunity. After all, markets change quickly, and if you wait too long, you might miss an opportunity that won’t come around again.

Your Company Is Growing

Whether you’ve found yourself hiring more employees recently or your sales growth has exploded, if your company is growing, that can be the perfect sign that it’s time to sell. Many business owners wait until their business has begun declining and they are either losing money or close to it before they begin to wonder when to sell your business. But, the truth is that if you want the best deal possible, it’s important for the buyer of your business to be purchasing something that they know will make them money. If they know the risk will be worth it, buyers will be much more likely to spend more money and give you a great deal.

You’re Daydreaming of Other Adventures

When deciding when to sell your business, you don’t want to just think about things like how much money you’ll make from the deal. You also want to take your personal life and desires into consideration. If you’ve found yourself daydreaming about other adventures, it might be time to take the next step and move on from your business. Whether you’re thinking about starting a brand-new venture or spending some time traveling, the best time to sell can be as simple as when you are ready for something new.

You Need More Personal Time

No one can do everything at once, and sometimes your career gets in the way of living your life. If you’ve found yourself needing more personal time, it might be the right moment to speak to a business broker about selling. Whether you are dealing with some health problems or you simply want to spend more time with your family, if you need to be out of the office and in the world, it’s probably a good time to sell.

How Can a Business Broker Help You Sell Your Business?

A business broker is someone who helps buyers and sellers find and solidify the best deals when buying or selling a business. An expert business broker can not only help you know when to sell your business but how to do so and how to get the best deal. Letting an expert help you sell a business can ease the process of transferring your business to new ownership.

The Business House offers expert seller services as well as exit planning services for those who are ready to move on and take the next step in their lives. Our targeted marketing plans, expert negotiation support, business valuation advice, and experienced brokerage team can help you get the best outcome for your business sale. If you’re interested in selling your business, contact us today to learn how our professional and courteous business brokers can help you.

Why Hire a Business Broker to Sell Your Business?

For most business owners their expertise is primarily focused on their specific industry segment and the topics and skills most relevant to their business. When it comes time to sell the business, the process can be a daunting and intimidating process if they decide to go it alone. Often the business owner will need to make operational changes in order to make their business as attractive as possible for potential buyers. Learning how to market and sell a business is different from selling the products and services which have made the business successful in the first place. By using a business brokerage firm, the business owner brings to the table a wide range of experience and expertise which will help make the process smooth as well as ensure they receive the best possible offer.

What is a business broker?

A business broker is a professional who specializes in helping business owners sell their businesses. Business brokers can provide invaluable services to a seller by bringing specialized knowledge and experience, as well as market expertise to the transaction.

Advantages of Hiring a Business Broker

There are many advantages to hiring a business broker when selling a business. Hiring an experienced professional to handle the transaction will ensure that both buyer and seller obtain the best possible outcome. Running a business is challenging and selling a business can be complicated. Make sure the process of selling your business is smooth and you receive the highest possible offer by hiring a professional that can save you time and money.

Business Valuation Expertise: An experienced business broker can accurately assess the value of a business, and then negotiate a fair price. They use a specialized set of standards to determine the worth of a business based on its assets and seller discretionary earnings. This ensures the seller gets top dollar for their business.

Advertising Expertise: A business broker knows where to advertise for maximum exposure to potential buyers as well as how to set up prospective buyer interviews.

Negotiation Skills: Business brokers know how to negotiate a successful transaction between both buyer and seller. This is particularly important when it comes to closing the deal on the sale of the business.

Knowledge in Business Transactions: A business broker understands all aspects of running a business, including legal and financial issues that may arise during a business sale. They will also be able to help buyers and sellers understand the intricacies of the transaction and make sure all parties are on the same page.

Business Connections: A business broker has a wide network of contacts that can assist in finding potential buyers for a business, as well as other resources that may be necessary during the sales process.

Discretion: Discretion is key when it comes to selling a business. A business broker’s method of marketing your business and buyer qualification procedures ensure the maximum confidentiality regarding your decision to sell.

Maximizing Business Value: A business broker can help develop strategies for a profitable exit. As an example, business brokers can often use lesser-known tax incentives and programs to decrease tax related closing costs. These practices can affect your valuation as well as decrease costs associated with selling a business so hiring a business broker can ensure you receive the highest possible offer.

What to expect from a business broker?

A business broker will help you manage the sale of your company to another interested party. They will set up the sales process, value the business, market and advertise your business, as well as negotiate on your behalf to get you the best, highest price.

When it comes to selling a business, hiring a business broker can be beneficial in many ways. From their expertise in business valuation to their negotiation and marketing skills, a knowledgeable broker can help you get the best deal possible for your business. So if you are looking to sell your business, it is worth considering hiring a professional who knows how to maximize its value and ensure a successful sale.

Hire a Business Broker from the Business House

Do you have a business to sell? Work with a trusted advisor!

At The Business House Inc., we have been helping business buyers and sellers since 1997. Our experienced team of Georgia business brokers will provide you with the knowledge, expertise, and resources you need to successfully sell your business or find a great opportunity to purchase a new one. Contact us today and let us know how we can help!