How To Sell Your Business


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Describes the process involved in selling a business and justifies the need for the assistance of a professional business broker like The Shamrock Group.

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  • Very interesting! I agree 100 percent that exposure through marketing needs to be maximized for a successful business sale.
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  • How To Sell Your Business

    1. 1. How to… Sell Your Business The Shamrock Group February 25, 2009
    2. 2. The US Chamber of Commerce <ul><li>There are about 11 million privately-owned businesses in the US. </li></ul><ul><li>Approximately one in five businesses will experience a change of ownership during the next year. </li></ul><ul><li>This will result in the transfer of ownership involving more than 2 million businesses. </li></ul>
    3. 3. How to Sell Your Business <ul><li>Determine its correct fair market value. </li></ul><ul><ul><li>Not just “book” value of tangibles </li></ul></ul><ul><ul><li>Value the intangibles too. </li></ul></ul><ul><ul><li>Recast owner’s discretionary spending. </li></ul></ul><ul><ul><li>Compare multiple methodologies. </li></ul></ul><ul><ul><li>Value the business correctly to get top dollar. </li></ul></ul><ul><ul><li>Justify the price to buyers and lenders. </li></ul></ul><ul><li>“ If you value your business… value your business.” </li></ul><ul><li>~ Business Week </li></ul>
    4. 4. How to Sell Your Business <ul><li>Position & market the business correctly. </li></ul><ul><ul><li>Market the business appropriately, efficiently and effectively. </li></ul></ul><ul><ul><li>Maximize favorable exposure to qualified buyers. </li></ul></ul><ul><ul><li>Minimize damaging public exposure (banker, employees, customers, suppliers, competitors, etc.). </li></ul></ul><ul><ul><li>Prepare the right information for buyers. </li></ul></ul>
    5. 5. How to Sell Your Business <ul><li>Find and connect with the RIGHT buyer. </li></ul><ul><ul><li>Focus on serious, pre-qualified buyers. </li></ul></ul><ul><ul><li>Focus on motivated buyers, not “tire kickers”. </li></ul></ul><ul><ul><li>Generate interest discreetly & confidentially. </li></ul></ul><ul><ul><li>Present the opportunity professionally. </li></ul></ul>
    6. 6. How to Sell Your Business <ul><li>Navigate the negotiating process. </li></ul><ul><ul><li>Avoid costly negotiating tactics. </li></ul></ul><ul><ul><li>Assist buyer with financing, if necessary. </li></ul></ul><ul><ul><li>Structure the deal to benefit both parties. </li></ul></ul><ul><ul><li>Coordinate due diligence. </li></ul></ul><ul><ul><li>Get the deal closed . </li></ul></ul>
    7. 7. How to Sell Your Business <ul><li>And by the way… continue to manage your business! </li></ul>
    8. 8. The Right Way to Sell Your Business <ul><li>Four things we can do for business owners that they can’t do on their own: </li></ul><ul><ul><li>Help determine the correct market price. </li></ul></ul><ul><ul><li>Correctly position and market the business. </li></ul></ul><ul><ul><li>Locate the RIGHT buyer. </li></ul></ul><ul><ul><li>Get the business sold and closed. </li></ul></ul>
    9. 9. Why use a Business Broker? <ul><li>Selling a business requires dedication, knowledge and attention – it’s a full-time job. </li></ul><ul><li>Can actually enhance value of the business. </li></ul><ul><li>Will save owners and buyers money: </li></ul><ul><ul><li>Correctly value the business. </li></ul></ul><ul><ul><li>Help avoid costly mistakes. </li></ul></ul><ul><ul><li>Effectively market the appeal of the business. </li></ul></ul><ul><ul><li>Maximize exposure to serious, qualified buyers. </li></ul></ul><ul><li>Will save time . </li></ul>
    10. 10. Commercial: <ul><li>The Shamrock Group is affiliated with Business Brokers Network. </li></ul><ul><ul><li>Established 28 years ago – Dallas, Texas </li></ul></ul><ul><ul><li>America’s largest network of mid-market Business Brokers </li></ul></ul><ul><ul><li>More than 450 affiliate offices nationally </li></ul></ul><ul><ul><li>Have sold thousands of businesses since 1981 </li></ul></ul>
    11. 11. The BBN Proven 12-step Process to Market and Sell Businesses: <ul><li>Collect business info </li></ul><ul><li>Assist with valuation </li></ul><ul><li>Execute listing docs </li></ul><ul><li>Prepare marketing information </li></ul><ul><li>Develop marketing plan </li></ul><ul><li>Qualify potential buyers </li></ul><ul><li>Secure offer to purchase </li></ul><ul><li>Orchestrate negotiations </li></ul><ul><li>Coordinate due diligence </li></ul><ul><li>Assist w/financing </li></ul><ul><li>Arrange for document preparation </li></ul><ul><li>Transfer ownership </li></ul>
    12. 12. Business Transition Goals Network Connect Broker Seller Pay Day Realized Buyer Dream Realized
    13. 13. Thank You <ul><li>Questions? </li></ul><ul><li>Phil Miller </li></ul><ul><li>The Shamrock Group </li></ul><ul><li>(866) 420-3312 </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li>[email_address] </li></ul>