Jeffrey Slaton: Why Are You Selling Your Business? Why Does It Matter?

July 21, 2009 - PRLog -- Business owners decide to sell their businesses for many good reasons; wanting to retire or relocate; liking the work, but tired of the ownership responsibilities that go with it; being burned out; or perhaps for health reasons.

There are, however, some reasons that aren’t good too such as selling it just for the money. Whatever your reasons, selling your business is a venture that may best be handled by professionals who are experienced in business brokerage, mergers & acquisitions, business law, accounting and tax matters because they won’t let emotions get tangled up in the sale.

What are you going to do after the sale? If you decide to sell your business, you have to think this through before you begin the process. There has been some real heartburn generated when a deal gets near completion and the seller suddenly decides now is not the right time to sell after all.

Is Now a Good Time to Sell ... or Not?
(Hint: It’s a Sellers Market during a Recession)

That may seem counterintuitive, but it’s true. During a recession, many businesses suffer, and some owners feel compelled to sell. But, many businesses do just fine too. The thing is, as an increased number of people lose their corporate jobs, many having been senior executives, they begin to explore the notion of owning their own business and providing for their own job security.

Although there are lots of people who cannot afford to buy a business, there are many that can ... and do. It’s a fact. During a recession, the number of people looking to buy an existing business rises dramatically. Statistics show that the ratio of buyers to sellers rises as high as 5 to 1! That is a Sellers Market and good news for people who are thinking about selling. Then again, the best time to sell a business is when it is at its best and that’s when there are fewer buyers around to buy it. If you are wondering which way to go, talk to the folks who buy and sell businesses every day, i.e. a business broker, and get a sense from them as to the current climate for sellers and buyers of businesses.

The marketplace is currently flooded with ideal prospective small business buyers. They are typically middle-aged displaced mid-level executives with money to invest. Facing a very tough employment situation and since the stock market is no longer a reasonable alternative many of these people are looking to buy a small business to secure their financial future.

The Ratio of Buyers to Sellers in a recession can rise as high as 5 to 1

Realistically, these prospective buyers have 3 career options:

• Look for another job
• Start up a business; or
• Purchase an existing business.

In the age of technology and downsizing, the competition for a seasoned job applicant is fierce. For most companies, an applicant with a significant amount of experience is unaffordable, especially when there are inexperienced applicants willing to work for one-third the salary.

Since as many as 90% of start-up businesses fail within five years, the extreme risk of starting a new business from scratch doesn’t seem worth it. The best solution seems to be to buy an existing business, which has a proven formula for success or it has already survived those crucial first five years. An established business has an existing product or service, an identifiable customer base, market recognition and verifiable cash flow. The mistakes have already been made. You don’t have to reinvent the wheel.

Jeff Slaton is with http://www.NetWorthBusinessBrokers.com belongs to one of the nation’s largest networks of business consultants. Jeff has been working closely with business owners for more than 10 years, ensuring their sales, marketing, financial, and exit objectives are successfully executed. NetWorth Business Brokers delivers face-to-face business consulting to small business owners seeking a future exit from their companies. He can be reached at Broker@NetWorthBB.com or 612-419-2905 for more information.

The current recession brings about a unique opportunity to sell your business for top dollar. With over 10 years experience in more than 200 industries, NetWorth Business Brokers Management has weathered the challenges of our economy’s peaks and valleys. We continue to net positive results for Minnesota business owners, with a high level of customer satisfaction. Contact Jeff today to find out why now may be best time to sell.


Serving Minnesota, Wisconsin Business Buyers Sellers

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Jeff Slaton is with http://www.NetWorthBusinessBrokers.com belongs to one of the nation’s largest networks of business consultants. Jeff has been working closely with business owners for more than 10 years, ensuring their sales, marketing, financial, and exit objectives are successfully executed. NetWorth Business Brokers delivers face-to-face business consulting to small business owners seeking a future exit from their companies. He can be reached at Broker@NetWorthBB.com or 612-419-2905 for more information.