What Is It Like Selling a Business In Florida?
What is it like selling a business in Florida? Hectic? Well, some may say so! But if you equip yourself with information and education, it can feel like just another transaction. Many of the mechanics remain the same: conducting research, consulting experts, identifying goals, and, of course, dotting the i’s and crossing the t’s to ensure a satisfactory, legal, transition. You made it through the first days of your business; you made it through the growing pains. You can make it through the sale.
Building a Sellable Business In Florida
The first step is the most obvious: building a sellable business in Florida. Pensacola business broker Bill Gibson put it plainly: “For every good business, there are multiple buyers.” The keyword being good. No matter what the market conditions are like, there is always risk involved in purchasing a business. Buyers want to know that they are investing in a stable company with a strong client/customer base, sound financial position, and opportunities for growth.
Does your business deliver when it comes to these selling points? It is time to ask yourself is now the time to sell. Do you need to strengthen your position before going on the market? And is the industry market favorable to a sale at this point? Now is an opportune time to sit with an advisor or coach to get objective advice. It’s easy to let emotion cloud the situation: after all, this is the business into which you have poured immeasurable time and effort. You can benefit from unbiased guidance.
Now, assuming you do have a business that is sellable in Florida, what are the next steps?
Selling a Florida Business – Determining its Worth
As mentioned, it can be difficult to separate yourself emotionally from your business and look at it through an objective lens. This makes the question, “How much should I ask?” challenging. Owners oftentimes either overvalue or undervalue their company, and this can set you up for a frustrating process – and a frustrating result!
You can value it based on: a multiple of either earnings and cash flow, gross revenues, or net assets/book value. Which is the right route for you? It depends – which is also a frustrating answer. Here again is another area in which it is important to have sound advice before you make your moves. Many buyers want to focus on future earning potential, so how can you best position your company to catch their attention?
At this point, it makes sense to have your business appraised. Again, there are different methods by which you can do this. Regardless, it will give you a good starting point as you proceed towards a sale.
Do not forget to consider other forms of compensation in addition to a sales price. These may include retaining stock options, leadership positions, and/or ownership stakes that can be even more advantageous. Look at and weigh all the factors. Part of this involves deciding if you want any ties to the company at all or if you want to walk away with a fresh start.
Find a Reputable Broker
You didn’t build a business by falling into the trap of believing you were always going to be the smartest person in the room. You wouldn’t have survived otherwise. So get help. An experienced broker has an insider’s knowledge of, and insight into, the market and will keep your best interests top of mind. This doesn’t mean you’ll necessarily get the price you’re asking (if conditions do not allow), but it does mean you will be able to close a satisfactory deal and one that meets your objectives.
Selling a business in Florida, or anywhere for that matter, is complex. There is no way around it. Having a broker on your side cuts through a great deal of the confusion so you can proceed with confidence. This professional will interact with potential buyers, negotiate the details, and move the process forward.
The broker also handles the preparation and processing of key documents, such as the Engagement Letter, the “Teaser” (which outlines the opportunity for potential buyers), any required Non-Disclosure Agreements (NDAs), Letter of Intent, and Purchase Agreement.
Retaining a business attorney, if you do not already have one, is also a good idea. They will handle the legalities of the sale – of which there are many! Your broker can help you connect with the right professional if needed.
Consult with AMB Performance Group
At AMB Performance Group, our only goal is to ensure your business performs at optimal levels. This may mean advising and coaching during the process of building a sellable business in Florida, or it may mean helping you go forward into the next chapter of your life/career with the financial assets you need.
If you are considering selling a business in Florida, start at the beginning: with good information and advice from experts. Our team will guide you in preparing for the sale, as well as in navigating its myriad complexities.
Set yourself up for success. Contact AMB Performance Group.
