Want to sell my business and am looking for a good broker

[Mk2703]

Hi - I've been running my own consulting business for nearly 4 years and at this point would like to sell. I was wondering if anyone had advice regarding business brokers that have a good reputation or that you've had a good experience with in the past.

[MyITGuy]

Sorry, no experience here. Out of curiosity what type of consulting did you do and what market area?

[Mk2703]

It's a statistical consulting business, I do a lot of work for small businesses, government contractors, academics doing studies, etc. Everything is run online. I run everything myself, so at this point I honestly have no idea how much it might be worth and whether I'd even be able to find a buyer. I did pull up a few business brokers online and plan to give them a call on Monday.

[jitenrajput9]

Hi,

Can you please give a brief information on your business? Even you didn't mention your business location and also some financial data. Give some information on your work and also some financial data like how much you are earning per annum, how much you invested, how much costumers you have etc. There are many ways to sell your running business. You have another option to post classified ad on the web also.

[PayForWords]

How much money did you make off of it a year? Multiply that by 6X and see how that number sounds. Might be a good starting point.

[Fulcrum]

I would think that your best option, before trying to set a price or find a broker/buyer for the business, is to ask yourself "Is this business truly salable?"

What I mean by this - does your business depend entirely upon you to do the work? Many of the single person companies do not sell because they require a very specific skill set in addition to knowing how to manage a business and most buyers can't afford to take the time to acquire said skills.

If you are confident that the hurdle outlined above will not cause prospective buyers/brokers to trip, then look into setting your price. Determine how much you want as well as how much you need from the proceeds of the sale and how you would like to receive your money (lump sum vs cash down with a seller held mortgage). Then compare the dollar value you want with the cash flow before loan payments to you and net profit after tax and see if the numbers make sense. If there are expenses that you think you can reduce or eliminate, than it might be better to hold on to the company for an additional 12-15 months and fix those expenses.

I would also like to add that many brokers will take on your listing and with hopes that a willing and able buyer might come along. Don't get overly discouraged if a sale takes a long time or never happens. It will give you time to take a step back, put yourself in a skeptical buyer's shoes, and ask yourself "what are they (not) seeing that I am (not)".

PS:
I always make a standing offer to purchase any legal business or cash flow, in any condition but subject to final review of the books and credit statuses, for $100.
I wonder why no one has ever taken me up on it?

[markhendricks]

The assets of your business seems to be:

- your website and systems to attract, convert, deliver, and serve your clients
- your expertise
- your client base

So the question is... who else would want those assets to plug into their current business?

Or... could you sell your software system to your clients and teach their employees how to do it, so you are not doing it but just consulting and guiding them?

Turn the telescope around and look through this different perspective, I imagine you will find it helpful, yes?

As always, my best to you --

Mark Hendricks