How to Sell Your Business

Few things are more impressive and noteworthy than launching a thriving business, especially when it’s an idea you began from scratch. After overcoming many challenges, your company becomes what feels like a living and breathing entity.

For many entrepreneurial-minded people, the entire purpose of starting a business is to exit it one day – usually by selling to a larger company that can truly maximize its potential and impact on the world. It’s quite different from selling a residential home where the owner often intends to keep it for years, if not a lifetime.

In this post, we’ll outline the steps to prepare yourself and your business for a successful and profitable sale.

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What Are Your Goals for Selling?

As a successful business owner, you likely already know how important it is to have a goal in mind of what you want to achieve. Your desired outcome starts with why you seek to sell your business. For example:

Are you selling to retire and exit your company completely?
Do you plan to stay in the business as an advisor or in some other capacity?
Are you starting all over again with another venture in a completely different industry?

Whatever your plans are, you’ll need a customized strategy to identify and attract the right buyer for your company. Connecting with a commercial real estate agent can help you assess the value of your property given your location and what types of business owners might be searching for premises like yours. From there, we can assist you with a pricing and marketing strategy that allows you to meet and exceed your transaction goals.

How can a commercial real estate agent help you reach your goals when selling your business? Find out here.

Are You Selling Partially or Entirely

Selling your business doesn’t have to be an all or nothing transaction. You could sell a portion of your company while maintaining most of the control. Or you can sell most of it while handing over the bulk of the decisions to another party. Alternatively, you can sell your business in its entirety and walk away to pursue a different path altogether.

One of your first steps will be to gather all critical documentation that shows the financial health and potential of your business, such as profit and loss statements, balance sheets, and tax returns. Positive numbers will obviously be more attractive to investors and potential buyers.

However, it’s important to be honest and transparent about any assets and liabilities your business may have. This protects you legally and helps to ensure your transaction can close with minimal disruptions. Once again, a commercial real estate agent can help you assess the data and make the most out of your situation.

Toronto and the GTA is a hub of fantastic investment opportunities! Learn more in the posts below:

Identify Possible Buyers

Finding a qualified buyer for a business can be a challenging process. You’ll need a comprehensive marketing strategy that presents your company in its best light while still being transparent. This is one of the most significant roles your real estate agent will play.

Your promotional plan will be unique to your business. It could mean 3D floor plans that showcase your property and its potential, as well as a host of online and offline marketing materials carefully crafted and distributed.

More often than not, finding a buyer with the means and desire to purchase your property is the result of networking. That’s why I always keep a detailed database of all of my clients, past and present, to be able to match sellers with the ideal opportunity.

Negotiating and Closing the Transaction

Once buyers start to show an interest in your business, it’s time to negotiate the actual terms of the sale. At this point, you and your agent will have already assessed the market value and determined the price you want to achieve as well as your terms for your closing date.

Other factors up for discussion could be the financing terms and your role going forward. For example, how involved will you be during the transition? Will you stay around and help the new owner take over the operations? If not, what post-closing support will you offer?

Are you planning to buy a new business after yours sells? If so, the posts below can help:

Seek Expert Advice

A business real estate transaction is far more complex than a residential sale. There are more details to attend to; business conditions can change depending on global events, interest rates, and other factors, and the entire process will take time. To ensure a seamless transaction, work with a professional team with extensive expertise in commercial real estate.

Right from the beginning, I can set you up for a successful transaction, from an accurate evaluation of your premises and company to helping you stay on the right side of any regulations to negotiating the best possible terms and price. I can also connect you with other professionals you will need for a seamless transition, such as lawyers and business accountants.

Generally speaking, a business sale focuses strictly on the numbers. Still, letting go of a company you’ve built from the ground up can also be a bittersweet experience, especially if it is a family business.

Creating a vision of what comes next can help you move forward with a sense of anticipation and excitement. It could mean retiring and enjoying your well-deserved time off. Alternatively, it could mean starting over and bringing a brand-new enterprise to life.

Whatever your goals are when selling your business in the GTA, I’m here for you every step of the way. Feel free to connect at OMarjanovic@kw.com or call 647.620.2882 to talk about your next steps.