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10. Finalize the Deal Prepare for final due diligence. Investigate buyer capabilities. Stay focused on running your business until the deal is final. 9. Negotiate Offers Negotiate from a position of strength. Offer incentives, such as financial options, to motivate buyers. Consider price, terms and conditions - what you’ll accept and what you’ll reject. 8. Attract Qualified Buyers Create a well written online ad to reach the largest number of buyers - even while keeping it confidential. Consider using a professional business broker. 7. Set an Asking Price Estimate the value of your business. Use price multiples, comps or work with a professional appraiser or broker. Consider risk and other variables. 6. Grow Your Business & Prepare for Your Exit Develop ways to add value to your business over time. Get your financials in order ahead of time. 5. Close the Deal Conduct final due diligence. Review and verify that all information is correct & accurate. Agree to final terms & conditions. Transfer ownership. 4. Get Financing Research your options. There are many ways to finance the purchase of a business. You may be surprised! 3. Make an Offer An offer begins the negotiation process. Expect a counter offer, and the dance continues. 2. Find the Right Business Search online listings and reach out to your network. Evaluate your options. Look at financials, value drivers and future earning potential. 1. Explore Your Best Options Before you buy, assess your needs, identify your skills and strengths. Determine the type of business that would suit you best. HOW TO BUY & SELL A BUSINESS Be Your Own Boss, Grow Big and Cash Out 10 9 8 7 6 5 4 3 2 1 Number of Sold Businesses Remain Strong 2016 2017 2018 2019 9,746 10,312 9,919 7,842 source: BizBuySell.com, 2019 Insight Report 2016 2017 2018 2019 $200k $228k $249k $250k Average Sale Price of Businesses Are Going Up source: BizBuySell.com, 2019 Insight Report Car Wash $900,000 Home Health Care $375,000 Auto Repair & Service $295,000 Bars & Taverns $200,000 Convenience Stores $185,000 Restaurants $180,000 Hair Salons & Barbers $79,750 MEDIAN SALE PRICE BY INDUSTRY source: BizBuySell.com, 2019 Insight Report Top States Where Businesses Are Bought & Sold 19% California • 16% Florida 8% New York • 10% Texas source: BizBuySell.com, 2019 Insight Report NUMBER OF REPORTED SALES BY INDUSTRY RETAIL SERVICE MANUFACTURING - 3.8% INTERNET - 4.3% CONSTRUCTION - 3.9% WHOLESALE - 1.9% OTHER 46.6% 38% 1.5% source: BizBuySell.com, 2019 Insight Report Personal/family savings Business loan bank/other Personal credit card Personal/family non-savings Personal/family home equity Business credit card Loan/investment family/friends Gov. backed loan (SBA) Venture capital investment Loan from gov Grants 64.4% 16.5% 9.1% 8.7% 6.3% 4.9% 4.5% 1.8% 0.5% 0.5% 0.2% Top Sources of Capital Used for a Startup or Initial Acquisition Source: Kaufman Foundation, Access to Capital for Entrepreneurs, March 2019. Excludes responses that answered ‘don’t know’, ‘none needed’, or ‘other’. 65% 40-59 years old 78% are male 48% earn $100,000+ 58% college educated Who is Buying and Selling Small Businesses source: BizBuySell.com, Demographic Study on Small Business Visit us at www.bizbuysell.com. BizBuySell connects owners, buyers and brokers in the Internet’s largest business for sale marketplace. Buy a business or sell your existing business. Research your options or prepare for your exit. Learn the entire process with our free step-by-step guides. © 2020 BizBuySell. The Internet’s Largest Business for sale Marketplace
