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how to sell business in two months

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Answers (2)
Julie A. Barnes, CPA
Small Business Exchange, Inc.
Travis County, TX

Hi Anand,

The following recommendation from my blog deals with your problem. What you need to keep in mind is flexibility - it's better to receive 50% of what you ideally want than to receive 0% of it because you've run out of time.

One of the Biggest Mistakes Made by Sellers

I recently watched helplessly as one of my listings closed its doors after investing almost $300,000. We originally advertised the business at $225,000 but it languished on the market with nary a serious inquiry. Against my advice, the seller refused to go below $200,00 until the VERY LAST WEEK. At that point, he was willing to take anything if I could find a buyer in a week. Of course, it didn't work out.

As I mentioned in the valuation section - a business is worth exactly what price it will fetch. It is a HUGE mistake to not listen to the market - if, after a month, you do not receive serious inquiries, lower the price 10%. If after another month, you still do not have any nibbles, lower it another 10%.

If you wait until the last minute, you will only be approached by bottom feeders who are hoping to take advantage of your desperation. This particular case was disturbing - someone could have made a very good living with this business - the seller simply refused to listen to the market - a fatal mistake in this case.

For more advice about how to buy or sell a business, please visit: http://AustinBusinessesForSaleBlog.com

Thank You
Julie A. Barnes, CPA
President, SBX, Inc.
http://www.SmallBusinessExchange.net - all inquiries addressed within 24 hours of less.

Apr 26, 2010
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Broker Consulting Services
Sr Broker
New York County, NY

Vested Business Brokers' Basic Steps to Buy a Business
Initial Consultation-Learn about how Vested's processes work to help you buy a business
You will want to have a one-on-one consultation via phone with a Vested Business Broker consultant, Joseph Di Bello (jdibello@vestedbb.com) to discuss all of your questions and concerns regarding the processes involved for Vested to help you buy the right business for sale. Joseph is trained to help you with your business concerns as well as your personal concerns. We realize that you are making both a financial and lifestyle decision, and the more we understand your needs, the better we will be able to help you buy the right business for sale.
FREE Buyer Registration-View confidential information about a business for sale
Once all of your concerns have been addressed and you have decided to proceed to use Vested in your quest to buy a business, your Vested Business Broker will help you to register as a business buyer at no charge. This is so you can view all the confidential financial information that you will ultimately need to see in order to feel comfortable when you buy a business.
You will need to either sign a one page confidentiality agreement also referred to as (NDA) non disclosure agreement electronically, or if you prefer, you can fax in the agreement (877-735-7505). In the agreement you promise not to disclose to anyone else any confidential information we may show you about any Vested listed business for sale.
Buyer Profile-Automation that helps you buy a business
Your Vested Business Broker will work with you to create your "buyer profile." This process helps make your search to buy a business more successful. Vested Business Brokers bring in new business for sale listings every day and your completed buyer profile will help our database to automatically flag any new listing that may be a good fit for you. When this happens, both you and your business broker are notified that there is a new small business for sale that you should take a look at.
Viewing Listings-Start online and then request an address of a business for sale
After you and your broker complete your buyer profile and enter it into the system, you can review each business for sale that the system recommends online. We also encourage you to browse through our listings of businesses for sale because often a registered business buyer believes he or she wants to buy a business of one type but ends up buying a business of another type that they simply just didn't think of.
Whenever you have looked in the database at a business for sale that you think may be a good fit, your Vested professional will provide you with the address of the listing so you can do a "drive by." If you prefer, your business broker will go along with you to take a look at the business for sale and address any questions about it that you may have.
Offer To Purchase-Making an offer on a business for sale
If a business for sale seems to be a fit and you have had a chance to think about making an offer (sometimes you may have to make several visits to the business to be certain), your broker will help you fill out a Letter of Intent. The LOI details the price and terms at which you would like to purchase the business for sale and sets the timeframe for due diligence (see below). Here your broker's experience will help you structure and make your best offer.
Due Diligence-Verifying the financials of a business for sale
Once your offer has been accepted, you will conduct a period of research on the business called due diligence. Basically, the process of due diligence takes place over a set period of time where you work with the seller to verify the financials of the business for sale as well as learn the inner workings of the business. Due diligence typically takes two weeks. A buyer should always bring in an attorney and accountant to help during this phase of the purchase. Your broker will be available to assist you during the due diligence process in every way.
Contract & Closing-Your dream to buy a business becomes reality
Following a successful due diligence period in which all of your concerns have been addressed, a contract will be drawn up between you and the seller. Typically, this is done by the attorneys on both sides of the deal. If the contract satisfies all the contingencies you have set forth, you and the seller can sign it and set a closing date. At closing, the business will officially change hands and you will have realized your dream to buy a business. Vested Business Brokers are available for you every step of the way to ensure that you are making informed decisions.
Call
Joseph Di Bello 508-965-8848

Apr 25, 2010

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