You can decide to sell a business for a variety of reasons. But if you are consistently making losses, the decision should be made immediately. Unfortunately, it is extremely difficult to quickly sell my business that is making losses without Website Closers level specialists. But even with their involvement, the owner must prepare thoroughly. This article contains top tips on how to act when selling a loss-making business so that the deal can still take place.
Tips for selling a struggling business
Before starting the process of selling a struggling business, it's important to know the secrets that will help you get the deal done faster. Experienced business sales brokers recommend:
- determine the timing of the exit from the company;
- realistically assess expectations;
- conduct a transparent transaction;
- be honest with the buyer;
- involve business brokers.
Each of these items individually will increase the likelihood of a successful transaction. Together, they will get you to a sale and possibly even above your expectations in terms of timing or price factor.
Choose the right time to exit the business
When thinking through the question of how to sell a business with declining profits a business owner needs to understand when it is time to leave the company. Of course, in a situation where there are large credit obligations and it is impossible to stay afloat will not think much. But if you see small market prospects, you can postpone the sale for 1-2 years.
Then there is a chance to reach a more sustainable position and the company can be sold for a higher price. But for this, you need to carry out a thorough assessment of the business and determine its strategy. If this is difficult to do on your own, it is worth engaging business brokers.
Adjust your expectations
One of the best way to sell a business that is losing money will be an honest appraisal of the company. Business owners are often emotionally attached to their companies. But you need to do a valuation and based on the data you get; you need to put a fair and honest price on the sale of your business.
A buyer will not be so attached to a loss-making enterprise. There are other investment options for him. So, if you don't ask for honest money that meets the real value of the company, it will be difficult to sell it even with a business broker.
Act transparently
When the first meeting with a buyer is scheduled, it is best for the seller to prepare in advance and conduct a valuing declining business for sale. It is important to show real numbers to the buyer and to be upfront about the firm's current problems.
In this case, the seller will show himself as an honest partner with whom it is possible to co-operate. In business, reputation is important and it is likely that for an honest offer, you will be able to get a fair payment. If you hide the data, there is a chance that the buyer will discover the problems himself. Then trust will be undermined and the deal can be forgotten.
Involve intermediaries
While preparing a declining business for sale you need to realize that the help of a business broker will be necessary for the transaction. Such companies can do more than just advise. They also have clients among investors and are ready to help with an independent valuation of the company.
The broker will help to quickly find flaws, help build a strategy for the sale, and get the most out of an unprofitable business. They will also take care of the necessary documentation.
Of course, all these issues can be closed independently. But it will take a lot of time and if the business does not continue to be actively engaged, its value will only decrease. Business brokers will not allow such problems for their clients.
Where to find an intermediary to sell an unprofitable business
When searching for a reliable business broker, look no further than Website Closers. Our specialists are experienced professionals who are ready at any moment to join the transaction on the sale of an unprofitable business. Together we can get the best possible deal and sell the business at the right time. Please contact our specialists for a consultation.
