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Maximize The Chances Of Selling Your Business Share Blog

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Jeff Snell | 05/18/2024

Qualified Deal Team:

Finding a Certified Business Intermediary is crucial for optimizing your business sale. Since only 17 states have any licensure requirements you will want to vet your broker candidates carefully.

The International Business Brokers Association (IBBA) is a valuable resource for locating qualified professionals. By visiting www.ibba.org, you can access a directory of certified business brokers, including those with the prestigious MCBI or CBI designation. The IBBA provides exceptional education and best practices to ensure that its members adhere to high standards of professionalism and ethics, providing you with a trusted partner in the selling process.

The Role of the Business Broker

A business broker plays a multifaceted role in the sale of a business. They assess your business's market value, develop marketing strategies, and qualify potential buyers. Brokers manage the entire sales process, from initial inquiries to closing the deal, ensuring that you remain focused on running your business. They also maintain confidentiality, protecting sensitive information from competitors and employees. An MCBI or CBI brings additional expertise and experience, further enhancing your chances of a successful sale with the most attractive price, terms and conditions .

The Role of the Transaction Attorney:

Legal issues should be at the forefront when selling a business. The process involves creating and executing detailed legal agreements. This is not the time to cut corners; hiring a good transaction lawyer is crucial. Moreover, settle any litigation, environmental issues, or other problems that could potentially delay or derail a sale. Ask the sellers business broker for referrals to transaction attorneys that they have had positive experiences with in the past.

Deal Only with Qualified Buyers

The sellers intermediary will weed out “window shoppers” and prospective buyers who are not a good fit for your business. Serious buyers understand they will be required to sign an NDA and submit a Letter of Intent prepared by a transaction attorney along with proof of funds from and SBA lender or loan packager to complete the transaction.

Be Realistic about the Business Valuation

Be prepared to accept a lower price than you might ideally want. Many factors can lead to this, such as a lack of management depth, limited geographical distribution, or high customer concentration. The macro economy, high interest rates and lenders debt service ratio requirements can also affect the price. Not all businesses are eligible for SBA guaranteed financing. Addressing these issues before placing your business on the market can help you achieve your desired price. Working with a certified business broker early on can help identify and mitigate these issues, maximizing your business's value.

Patience and Preparation

Selling a business requires patience. You must be psychologically prepared to wait a considerable period before your business is sold at a price you find attractive typically 6-12 months.

Be responsive to your brokers document requests. Delays in receiving data can be viewed by buyers as a red flag.

In conclusion, leveraging the expertise of a Certified Business Intermediary, particularly one with an MCBI designation, can significantly enhance your chances of selling your business successfully. These professionals bring a wealth of knowledge, experience, and resources to the table, ensuring that the process is managed efficiently such that you are well-prepared and positioned for a successful sale.


This blog was originally written by Jeff Snell, LMCBI, M&AMI, CM&AP, ABI. Jeff is the founder and principal broker of ENLIGN Business Brokers and Advisors (www.enlign.com), headquartered in Raleigh, NC. For over 20 years, ENLIGN has been providing business brokerage and M&A transaction services to main street and lower middle market business owners across the United States via the Atlas Alliance. He can be contacted at (919) 624-1124 or jsnell@enlign.com.