Sell My Business Arkansas | Seiler Tucker

HOW TO SELL A BUSINESS IN ARKANSAS: STEPS TO SUCCESS AND MORE

Selling a business is a process, but it doesn’t have to be a challenging one. In this guide, we’ll cover the steps to a successful sale, mistakes to avoid, and more.

Arkansas business owners have several reasons for choosing to sell their business. Of course, regardless of the reason, there is a process involved and that starts with educating yourself. This isn’t like selling a home or any other real estate transaction—you’re selling an asset, and it needs to be done properly.

One of the best tools that you have is the resources available, including this article, to walk you through the process and ensure that you get the deal that you deserve. It’s a little different for everyone, but the general process is straightforward and involves similar steps no matter what kind of business you’re selling. If you want to sell your business with confidence and trust that you’re doing it right, start with the basics.

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STEP ONE: THE BASICS

If you want to sell your business, you have to get it ready. That means taking the time to gather the paperwork, get your financial information and documents in order, and have your business valued so that you know how much to ask for the sale. You’ll need to find the right people to help you along the way, too because they will be another invaluable resource. Business brokers and financial planners will guide you through the process and ensure that your transaction goes smoothly.

What does “gather the paperwork” mean, though? In addition to a profit and loss statement, you’ll want to make sure that you have any relevant documents, which will usually be presented as an executive summary.

The Executive Summary

This is where you will want to provide the details of your business. You can include financial information, a fact sheet, security reports, media mentions and awards, a list of employees, and specific programs, tools, software, and other resources that the business requires. You could even include an FAQ section for quick reference and other legacy documentation (revenue documents, expense and profit reports, appraisals, etc.).

If you don’t have the basics down, you can’t move forward. Not only that but if you can’t provide these kinds of documents to your leads, they probably won’t be interested because they can’t get the information that they need.

STEP TWO: WHOM TO HIRE

It was briefly mentioned in step one to get the right people to help you, but it deserves a little more attention. Consider whether you need a broker to handle the sale, a financial planner or accountant to help with the finances, or anyone else who can assist you in making the sale easier, and easier to understand along the way. Too often, people get in a hurry or try to be cheap in selling a business and want to do it alone. Other times, they just don’t think that they need help.

Either way, you’re wrong. Unless you happen to be a professional broker and/or accountant yourself, you can’t sell a business on your own and expect the best outcome. You might pull it off, but it won’t be for the best price or because you did your due diligence. Anyone who sells a business and makes a significant profit without having to hire people is probably just lucky.

It’s not that it’s difficult to sell a business. There are just many steps involved and the professionals out there are part of your toolkit—their services exist for a reason. You’d hire a realtor to sell your residence, so why wouldn’t you hire a broker to help you sell your business?

The people you hire are an investment, not an expense.

STEP THREE: TAKE IT TO MARKET

Now that you have the details in order and have the right tools at the ready, you can list your business for sale and start marketing to attract potential buyers. Remember, this is the digital age. You can’t just post in traditional business classified sections or limited spaces because people are looking in new places and want more flexibility and access to the things they do online.

Specifically, you need to develop an omnichannel marketing strategy that includes social media as a marketing tool because it’s where many people go to find opportunities, connect with others, and make new networking connections. If you work with a broker that’s familiar with the current climate and trends, their suggestions will always include social media and other modern marketing alternatives to get your listing seen.

Your broker will help you close the deal once you’ve chosen the best offer, and then you’ll be able to move on to the next stage of your life. It’s a process, and it’s one with steps for a reason– you can tweak the details and make it fit the needs of your business sale, but the basics are pretty standard. Make sure that you have a plan and put that plan in writing so that you can cover all your bases as you go. Up next, we’ll discuss all the common mistakes and what you need to be mindful of when selling your business.

MISTAKES AND PITFALLS TO WATCH FOR

Too often, people get ahead of themselves when they are selling a business. They just dive in and start forging ahead with half-finished plans. This doesn’t mean that it won’t work, but it’s not usually an effective option. Here are some other mistakes to avoid and things to keep in mind when selling your business for the best results.

  • Timing is everything. It doesn’t matter what industry you’re in or where your business is located. If the timing isn’t right, you won’t sell a business no matter how well it’s priced or how successful it is. Whether it’s seasonal or business considerations, make sure that you choose the right time to go to market. There isn’t really a “bad time” to sell when you work with a professional broker, of course, so keep that in mind. They’ll be able to take into account all the different factors and ensure that you still get the best sale.
  • Watch your pricing. One of the biggest reasons businesses don’t sell is because owners price them wildly and randomly without much thought. Or, at the very least, they are poorly priced because the value was calculated incorrectly. Both of these could be resolved by hiring a broker that can assist you in pricing your business strategically to get the right sale sooner than later.
  • Don’t go it alone. It’s easy to get in over your head, assume you can handle the work, or even feel like you can’t afford to hire people to help you along the way. That’s the wrong way to think. Part of selling is having the people you need and investing in them is just that—an investment, not an expense. No matter how much you think you know or how successful and desirable your business might be, you still need the pros to get the best outcome.
  • Plan and prepare carefully. If it’s done correctly, you will probably spend a lot more time and effort on the planning and preparation of your business sale than you spend on the actual sale transaction. That’s the goal, after all—good planning will lead to a quick, efficient sale in ideal conditions. Of course, bear in mind that the average deal can take 3-6 months to close, or longer depending on the terms and circumstances.
  • Don’t stay too long. In some deals, the buyers will request that the current owner stays on to assist, or at least to consult so that the transition can be smooth for everyone involved. You can do this, but make sure that it’s a short period so that you’re not overextending yourself or getting stuck in the business you were trying to get out of.

These are just some of the most common mistakes that come with selling your Arkansas business. You could find yourself in any number of situations that could impact your business deal. However, if you have the right people and plans in place from the start, it will be a simpler process with fewer hiccups and a better chance at getting the price you deserve.

FAQs ON HOW TO SELL A BUSINESS IN ARKANSAS

What is the difference between a broker and a realtor or real estate agent?

A real estate agent is generally a residentially or commercially licensed professional that is responsible for selling physical properties. They make work independently or as part of an agency. A broker is more of an owner of an agency or in somewhat of a higher position and is someone who can help you sell a business both physically and otherwise.

How long will it take to sell my Arkansas business?

Some business deals can be closed in just a couple of months. Some can take up to a year. It all depends on the deal and the buyer involved. Typically, business owners in Arkansas see a sale process that lasts around 4-7 months, on average. When you plan accordingly and enlist the help of the right people, you may be able to speed the process up a bit by streamlining things and taking advantage of professional assistance.

I already have a buyer—can't I just sell my own business?

There are rare instances where it may be possible for someone to sell a business without enlisting the help of a bunch of different people. If you have secured a buyer and come up with your own arrangement, you might just want to hire a lawyer to get it in writing and then complete the deal in a way that works for the people involved.

Typically, though, it’s best to avoid selling yourself because of all the complexities and intricacies of selling a business. Even if someone is interested from the start, you should have them go through a broker to get to you.

How do I value my business for sale?

There are several formulas for valuing a business and everyone thinks that their method is the best. You can also find online calculators to help you value your business if you want to get a quick estimate, but these are rarely as accurate as you need them to be. The value of your business will usually be a multiple of your profit and total assets, but the variable of the multiple will depend on several factors. This is where financial pros can come in handy.

Can I sell my business quickly?

You may be in a hurry to sell your business for any number of reasons. It’s going to be important for you to take a minute to assess the situation before you figure out how to proceed. However, know that a quick sale is not always the best sale. By hiring a broker and the right financial people, you can sell your business more quickly than going it alone, but there’s no guarantee of how long it will take.

GET STARTED WITH THE EXPERTS TODAY

Now that you’ve learned the basics and have some tips to help you along the way, it’s time to get the people you need. At Seiler Tucker, we have a 98% close rate that says we know how to help you sell your business, no matter the industry, market climate, or other factors. We’ll ensure that you get priced properly, marketed effectively, and reach the most likely potential buyers for a quick, painless business sale.

If you are ready to sell a business in Arkansas, we encourage you to contact us. Our team can assist you with everything from the valuation and planning to closing the deal, and with our years of experience in brokering business deals, you can trust that you’ll get the best outcome every single time. Schedule a consultation to discuss selling your business today.

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