How to Sell My Business in Arizona
Arizona is a great place to own and operate a business, and for many of these same reasons Arizona is also a great place to sell a business. Not only do we have established businesspeople looking to expand their businesses, but we also have many people that are moving to Arizona for the quality of life, large population, lower taxes, and good infrastructure.
We have people from across the country and the world looking to relocate here, many of them are looking for an opportunity to buy an established business like yours. What does this mean for you? It means that if you have a profitable business that is priced right you should have no problems finding a buyer for your business.
Steps to Selling Your Business.
Step 1. Prepare yourself:
Businesses take a lot of hard work and investment to make them successful. This investment can often take the form of emotional attachment. This means you must really dig deep and understand why you want to sell and be able to articulate this to a potential buyer.
Step 2. Prepare your business:
As you begin to get ready to sell your business it is important to make sure your business is as attractive to a potential buyer as possible. Here are some key things that buyers are looking for:
- Maintain clean books. Tax efficiency is one thing but your best ROI in a business sale is to have a documented bottom line. A buyer is looking for verifiable income.
- Increase profitability as much as possible. Every dollar you make increases the value.
- Clean up the facility so that it shows well when a buyer does a site visit.
Step 3. Find a Competent Business Broker:
Finding a competent and experienced Broker will help you to manage the complex process of selling your business. Most businesses will see a higher valuation as well as give you the peace of mind that comes with having a professional guiding the process from beginning to the end of the transaction.
Step 4. What is your business worth:
Getting a realistic idea of the market value of your business is imperative. If it is priced too high, it won’t sell. If it’s priced too low you are leaving money on the table. Businesses are usually valued based on a multiple of bottom-line profits.
Step 5. Create a marketing piece:
In this marketing piece, you reveal the name of your business and give an overview of your operations which would include a multi-year financial statement and the asking price.
Step 6. Find a qualified buyer:
All potential buyers are not created equal. It’s important that you find out about the potential buyer’s background and experience as well as their financial ability to buy the business. At the same time maintaining confidentiality.
Step 7. Negotiate a sales contract:
The terms of any agreement would be negotiated by using a nonbinding Letter of Intent, or a Purchase agreement contract.
Step 8. Due Diligence:
This is the negotiated period where the business is under contract and the owner will be asking in-depth questions about your business. This period varies from two weeks to six months depending on the size of the deal.
Step 9. Closing:
Now it’s time to close the deal. I always advise here in Arizona to use a qualified Escrow company that specializes in business transactions. The escrow company will conduct the UCC Lien and judgment search as well as collect the necessary documents that need to be signed at closing.
Don’t Be Overwhelmed
All of this is a lot for a busy business owner to handle, but help is close at hand. The benefits of using an experienced business broker are many. We often bring more buyers to the table, businesses often sell for a higher price We also conduct a free Broker’s Opinion of Value, create the marketing material, and handle the work of finding qualified buyers all while maintaining confidentiality. We also have a clear process that takes a transaction from taking your business to market to getting a successful close. All so that you can do what you need to do which is continuing to build your business.
If you have decided to sell your business, please call me: Bryan Detwiler at 480-486-9096 or email me at bryan@tripointbroker.com to schedule a free consultation.
