Written by Business Broker, Dan Arcand
Dow Jones Industrial Average hit 30,000 points for the first time in its 124-year history on November 24, 2020 driven by the Federal Reserve’s short-term interest rates cuts back to roughly zero and Congress, which came through with trillions of dollars of financial aid for the economy. Due to Covid-19, rates of 4% loans thru SBA are now available. One year ago, that rate was 7%. Do you realize what that means for a buyer’s ability to service debt? It means your business is worth much more. The strategic buyer pool for most companies continues to be extremely aggressive. If selling your business has crossed your mind recently, all these factors make 2021 a year you might want to consider retirement.
What does Sunbelt bring to the table?
- A pool of highly qualified buyers– Since I specialize in the Transportation industry, I have many contacts within that industry that are ready, willing and able to buy. Additionally, we advertise on over 40 business acquisition websites, over 50,000 buyers locally, 200+ offices worldwide. We’re the largest broker in the world, meaning we have the greatest reach to finding buyers. We will actively target market the best strategic buyers for your business and will engage them with our proven process that will generate multiple buyers for your business, which will generate you the highest and best price for your business.
- Confidentiality– A critical key when selling your business is not letting the cat out of the bag. Sunbelt manages confidentiality so that employees, customers, vendors and competitors don’t find out.
- Selling process– Sunbelt has a proven process that maximizes not only your price, but your net after closing tax dollars.
- Marketing and Due Diligence expertise– Details like knowing how to price your business to attract the most buyers and how to get through due diligence with your sale price intact are often what will make the difference between a stressful or successful sale.
If you’re thinking about selling your business, you should use that same approach of hiring a professional. You need a professional who understands every nuance of what it takes to get the most for all the years and sweat you’ve invested in getting your business to where it is today. Sunbelt can make that happen.
Could you sell it on your own? Yes, but you’ll probably be selling to a competitor or employee, and most certainly be leaving $$$$ on the table in doing so.
Selling to your competition invites many risks. There’s a reason your competitor seeks you out on their own; THEY DON’T WANT THE COMPETITION! There’s a saying; “If you have one buyer, you have no buyers.” Selling to one isolated buyer means you’re letting them establish the market of price, terms, their timeline to close, and many other advantages because you have no alternatives.
Selling to an employee may be even riskier. Do they have the necessary down payment that lets you sleep at night? The best employees often do not make the best business owners. What if the transaction doesn’t get to the finish line? Will that key employee stay on? You, as the business owner, take on more risk than anyone would be comfortable with in either of these scenarios.
With the proven Sunbelt sales process and a talented team supporting you, please consider us as your resource when you sell your company. Please call us to discuss valuing your business, tax implications, and getting the deal financed. Please call us at 612-455-0880.