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When is the appropriate time to start preparing for sale of a business? This is a very interesting question, with many factors to consider. First, it is of upmost importance to maintain confidentiality. The fallout from knowledge of a sale can be a disaster from an executive, employee, supplier, customer and partner standpoint. There is a lot of uncertainty and huge potential negatives, so confidentiality is critical and knowledge of a sale is to be only on an absolute “need to know” basis. To maintain confidentiality and have the best strategy to handle some additional factors that we will cover, it is mandatory to have proper representation from PA Business Brokers. There are some very surprising statistics that all business owners should know. First, only 1% of businesses can currently be sold. That is an extremely low number and the reason why is there is a great deal of upfront work, preparation and items to complete in order to sell a business. It takes a great deal of justification for buyers to be comfortable and confident in their offer. The best way to handle all of these is to obtain proper representation early on. The earlier the better in fact business owners should begin preparing which we will touch on in more detail later. Before that, a second surprising statistic is that 50% of businesses are predicted to be sold in next 15 years. This is partly due to the aging of baby boomers who will retire and sell their businesses. With all of this supply of businesses, there may be a lot of supply of businesses being sold to available buyers. Business owners can engage with an expert PA Business Broker to learn more about the competitive environment of the current time and their industry. In fact, a business valuation will address the competitive environment and recent similar business transactions. A business valuation is a critical step early on in the process of selling a business. Contained in the valuation are calculations, similar sales, competitive and economic environment, financing situation, value drivers, etc. This information is extremely helpful in learning why you business is worth what it is worth. In addition, there are extremely large opportunities to make improvements based on all the information and value drivers given in a business valuation. Even the smallest improvement can have a major increase on value. This makes it critical to start early in order to maximize the proceeds from the sale of a business. There are countless benefits to starting early to prepare a business for sale in fact it is mandatory for the best results and to maximize proceeds. Proper representation from expert PA Business Brokers such as A Neumann and Associates can help you improve the value of your business, maximize proceeds of sale, obtain favorable terms, minimize the business owners hassles and give them piece of mind often in half the time of industry standards. For more information on preparing a business for sale and other questions, visit A Neumann & Associates, LLC As a PA Business Brokers , A Neumann and Associates has been involved in over 5000 business valuations in over 25 years of experience. They have earned an A+ rating from BBB by provided industry leading services to business owners who are making one of the biggest decisions of their life, selling their business. If you are considering selling your business, your first step is to contact A Neumann and Associates who service New Jersey, New York, Pennsylvania, Maryland and Delaware.
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