Selling my business....tips?

[nomo-aloha]

....Sorry for the slow response in thanking the latest contributers to this thread. I have (un-expected) family in town...enough said.

I just logged on, thought I'd have a look and WOW. It is clear to me that I must devote some un-interupted time in order to fully comprehend / digest your graphs, advice and other contributions.

In the meantime, just wanted to drop this note of thanks as I do not want to appear ungrateful. I am grateful, humble and beginning to see the bigger picture. Thanks again!

 

[CybrMike]

all of the advice above is great, detailed, specific advice and I agree with 99.9% having just come off selling my business. One thing I will note is to be a bit careful when using the methodologies decribed above. Generally this is the accepted way to value and purchase a business, but since your business is fairly small, I would say that you may be able to sell it to a less sophisticated buyer who may value it in a completely different way. And contrary to what someone said above, less sophisticated investors will pay for a job, just look at how many folks are starting their first subway or mcdonalds.

All I'm saying, is that if you can find someone who is genuinely interested, it can definitely change the multiple, or the valuation method. Obviously this can also work in reverse.

Just make sure to disclose absolutely everything. Would be nothing worse than to sell it, and then get sued a year later.

 

[nomo-aloha]

all of the advice above is great, detailed, specific advice and I agree with 99.9% having just come off selling my business. One thing I will note is to be a bit careful when using the methodologies decribed above. Generally this is the accepted way to value and purchase a business, but since your business is fairly small, I would say that you may be able to sell it to a less sophisticated buyer who may value it in a completely different way. And contrary to what someone said above, less sophisticated investors will pay for a job, just look at how many folks are starting their first subway or mcdonalds.

All I'm saying, is that if you can find someone who is genuinely interested, it can definitely change the multiple, or the valuation method. Obviously this can also work in reverse.

Just make sure to disclose absolutely everything. Would be nothing worse than to sell it, and then get sued a year later.

SUPER Mike, Thanks for the info. I've been playing tour guide for the past several days and only found your post today. I really appreciate the information and hope your particular transaction was a great success!