Selling Your Portland, Oregon Business

There are several reasons why a business owner decides to sell his business. Selling a business is not the easiest decision to make for a business proprietor who had built his business out of blood, sweat and tears, so to speak.  Needless to say, It is not easy to just turnover the intricate process of selling the business to a business broker (though this is the most recommended move) if the seller has no idea at all of how to go about the process.

Avoid the unexpected. When deciding when to sell, do your homework and carefully plan your selling strategy. Anything may go wrong or completely head towards the opposite direction of your end goal in selling the business. Even if you have decided to sell with the help of a professional business broker, preparation is the key to a successful business sale. Treat the process of selling, as would a good business broker do, with utmost care like what you did in building and developing your business. After all, who, in his right mind, would buy a business that is haphazardly offered with only the urgency of the business seller to dispose of the business at stake?

Remember to put into consideration both internal and external factors in the crucial moment of decision making. Before deciding to sell, part of the internal preparation is to dig into your books and do the balance sheets for at least the last few years of operations. Allot some time in updating your financial records. Relatively, put some weight in the external factor, i.e. prevailing economic condition that affects stability of continuing operations. Not all considerations on circumstances may align perfectly but still you are now prepared to hurdle any obstacle.

When fully decided and cleared of any backroom hinges, think of the people who may be or may have been a part of your team, i.e. silent partners, friends or family who, at one time or another, may be stakeholders in the business you are selling. Even how small their shares are, they are still legally entitled to have a piece of the cake, (do not laugh, but prepare to let go of the icing tooJ)

Determine your business value or worth as this will also be the basis for setting your asking price. Know the market and sell at the right time. Until such time, that you have a well prepared plan, never discuss your selling-out moves to employees and other beneficiaries of the business. You will never know their reactionary moves (just assume the “negative worse”) that may thwart or block your goals.

After business valuation and determining the selling price, researching for similar businesses that are up for sale in the market would be an inspiring move regardless of size or price. Now, that you are done with due diligence, it is now time to find buyers for your business. Initially, you may want to sell the business to your employees because among all other prospects, your employees know your business well and are more than capable of running it. In a gist, employees are extremely motivated and would be top candidates to ensure the business will move forward when incentivized with power to own the business.

Have your legal adviser set up a payment scheme wherein the employee buyers could purchase and pay in easy installment plan with support of your financing or outside resources. In 1978, the Employee Stock Ownership Plans or ESOPs was established and required by law as part of the benefit plan for employee retirement. The ESOP is equivalent to the “profit-sharing plan” where companies benefit for the purpose of continuing business, incentivizing and enhancing motivation among its employees.

Your next best prospect is your business competitor. You would not expect this recommendation but it is a win-win scenario – you are getting your business worth and peace of mind knowing your business is in good hands, while competitor-buyer is more than happy to have one less competition in the block.

Contact: Westwood-Benson at 800-761-8460, www.westwoodbenson.com

Client and Customer Relationships with Business Brokers Sacramento

Business Brokers Sacramento

 

 

 

 

 

 

 

 

 

Business Brokers Sacramento Valuable Services

Business brokers Sacramento, otherwise known as intermediaries or business transfer agents, help sellers and buyers of privately owned small business in the selling and buying process. A Business Brokers Sacramento appraises the particular value of a business; publicizes it for sale with the option of revealing its identity or not; handles the preliminary prospective buyer discussions, interviews, and negotiations with potential buyers; facilitates the development of due diligence investigations and lends a hand to the overall business sale transactions.

Agency relations in business proprietorship dealings engage  Business Brokers Sacramento as the representative of the principal client, whether that principal is a seller or a buyer. The principal broker and his agents become the agents of the principal. The third party in the dealings, who does not hold agency relations with the broker, becomes the broker’s customer.

Conventionally, Business Brokers Sacramento provide a standard full-service brokerage relationship based on commissions under a duly signed agreement with a seller or with a buyer, under a buyer representation agreement. This generates, under common law in most states, agency relations with fiduciary duties. Some states may also have rulings that control and determine the nature of the exemplification along with specific licensing requisites for the business broker.

In some states, Business brokers Sacramento may be hired as a transactions broker who represents neither seller nor buyer as an agent. Transaction brokers work to expedite the dealings with both seller and buyer on the equal level of trust. Dual agency comes about when one brokerage acts in behalf of both the buyer and the seller under written mutual agreements. Individual state laws treat dual agency differently. If an agent is allowed by the state law to represent both parties in a one transaction, the brokerage is considered a Dual Agent. There are special laws covering dual agents as regards price negotiations.

In other states, Dual Agency is permissible in situations wherein the same brokerage represents both the seller and the buyer. If one agent has a listing and another agent has a buyer who is interested to buy the listing, Dual Agency come about by designating each agent as an “intra-company” agent. The principal Business Brokers Sacramento retains the Dual Agent status. A few states allow an agent and a broker to represent transactions as dual agents.

The buyers and sellers are the principals while the Business Brokers Sacramento and their agents are the principals’ agents in the sale that is defined by law. However, agents are not given authority to sign any offer to purchase or any closing document. The Business Brokers Sacramento may include their company’s name on the contract in their capacity as agents for the respective principals.