Be aware they are looking for deep discounted deals. Not always the best result for the seller!
I am sure you are receiving calls, probably on a weekly basis from buyers who want to talk about your business. That's good.
Having a business asset that others want to own can lead you to the spot of exiting, cashing out, and moving on to the next phase of your life.
My advice is be sure you really know what your business is worth before bothering to entertain any offers no matter how good it may appear at first.
I am not suggesting you would be susceptible to a bad deal but the tone and pace of private party direct purchase activity is growing and will keep growing for the foreseeable future. It is growing for many reasons, but foremost its because there are a lot of business owners who would like to cash out and there is a TON of MONEY chasing them.
These two dynamics at play mean deep discounting, paying well below value is happening everywhere.
Nothing wrong with getting out and walking away on a short quick sale. If you get the money you need to move on, I am not trying to stop you. What I am suggesting, is do the work the due diligence, get real, not some crazy made up multiple of EBITDA, a real value number, and know what "value gaps" you have that could be closed to enhance the real value in the next 12-24 months.
Unless you have to sell now and quickly avoid the temptation to get out now and put in some dedicated time to be sure you are really getting your "sweat equity" pay out at a competitive number.
Its worth the effort, although painful at times, to maximize this opportunity. Deep discount buyers are now vey active, be careful.
We believe inside every business is a better one. Take the time to build value, before taking a deeply discounted offer because it was easy. Take some time and get good advice.
Tie your business growth decisions to your comprehensive personal financial plan that incorporates all of your business planning directly into it.
Private buyers are not doing you a favor helping you avoid the broker fee or M&A advisor success fee because they care about you getting everything you deserve. They need to buy low, very low in many cases to make their business models work.
I say this as a spectator. My work is financial planning. We coordinate of our clients personal planning, and wealth accumulation goals to meet their long term needs. The business is a usually a core asset, and our work helps clients determine what they need to extract after taxes to live the life they desire after they exit the business.
Selling at a deep discount, unless time is critical, is unnecessary and not appropriate for most people. I much prefer, to help them work a little longer and with guidance to max out their business value.
What do you think? Let me know.