Home > Business > Buy and Sell Businesses: Your Guide for a Successful Enterprise

Buy and Sell Businesses: Your Guide for a Successful Enterprise

Establishing, buying and selling business enterprises are all part of the every entrepreneur’s journey.

You need not to start certain business from scratch just to be an entrepreneur. Go to the Businesses Buy Sell website, which is readily available for every entrepreneur and those who are interested in doing a business venture. Buying a business can actually be a better option here. Buying and selling a business need careful consideration of the involved factors such as business sale preparation, buyer search, purchase funding and pricing.

15

Here’s a guide for business buy and sell offering you necessary procedures for structuring transactions, settlements and negotiations.

  1. Decision Making to Buy or Sell a Business Enterprise

Business owners decide to sell business for partnership dispute, retirement, losing money, plateaued sales and earnings due to insufficient management resources or working capital for growth, death or illness or the principals, diminished business interest because of frustration or boredom, and retirement. The old axiom that timing is everything is still applicable to the decision of selling a business.

In buying a business, the prospective buyer should think through your motives of purchase as well as your criteria in doing so. This requires you to determine your desired location and amount of money for investment.

  1. Preparation for Business for Sale

Almost all private businesses are run in a way that lessens the tax liability of the sellers. However, this same initiative also reduces the value of an enterprise, leading to a conflict between operating a business as what the owner wants and preparing its sale. Business presentation must include its history, description of its operation, discussion of suppliers, review of its marketing practices, determination of owners, explanation on its insurance coverage, and a compendium of its financial statements.

  1. Search for Business Sellers and Buyers

In finding sellers and buyers, you have to acquire trade sources, print advertising, and business opportunity intermediaries. Experienced intermediaries can assist you in pricing the business, compiling comprehensive presentation package, ensuring the conduct of proper legal steps, professional marketing of business, negotiating and assessing offers, and setting the terms.

  1. Evaluation of the Business

The buyer should review the history and operation of the business for sale. Learning how the business started, the change of its mission, and the occurrence of its past events to shape its existing form. It also reviews its balance sheet, income statement and financial ratios.

  1. Funding for Business Purchase

The source of the funding of the buyer is dependent on the size of the business that is being acquired. The buyer needs to look for funding from any outside source when necessary funds for down payment are not available. The opportunities in getting outside funding improve as the size of the business increases.

  1. Pricing of the Business

The identification of business value is the factor of buy-sell transaction fought with opinion differences. Both parties should be satisfied with its price and should be understood on how it is determined.

Use the guidelines above the next time you plan to buy and/or sell your business so that success in entrepreneurship is not far from being a reality.