Other options available?

At North American Business Brokerage, we believe that there is a right time and wrong time to sell a business. Often businesses are not in the best condition to sell for a high profit in which case business owners may find alternatives that may help improve the business in the meantime and grow the business to a point where it is profitable to sell.

We advise our clients to look at all internal and external factors when considering selling their business. Many owners consider selling their business for years but never prepare to take the actions necessary to have their business prepared to be sold to the new buyers.

There are many alternatives business owners can consider in the meantime while we assist them in their business exit strategy. This means fixing and improving areas of their businesses that are weak or can be optimized to adequate levels that will demand the highest asking price possible.

Below are few of the alternatives we suggest business owners consider prior to selling or preparing to sell their business.

• Market the Business – Often times the value of a Business can be improved extensively through marketing initiatives. This means improving the branding of the business, finding the correct target audience, improving operations, providing value to your customers, have a strong online web presence, create brand recognition and loyalty, advertise and explore all options of obtaining more prospects and customers through market strategies.

• Consider if it is the right time to sell – Often times people make the mistake of waiting too long to sell their business and only seriously consider selling when their business is declining. Big mistake. The best time to sell your business is when it’s at it’s best. Business owners often wonder why they should sell their business when they are already making money-That way of thinking is like a business owner, and not someone who is an entrepreneur. Often there is more profit in selling a business, investing the money elsewhere, or buying a different business that excites you or is more profitable with the earnings from the sale.

• Splitting the Business? – Often it may be the case that you are not the sole proprietor of the business in which case there are a few other options and factors you must consider. Being part of a partnership with multiple owners or being part of a corporation-splitting the proceeds from the sale is a key factor that must be considered. Business advisors can assist in understanding this process to divide the business amongst the stakeholders which outlines parts of the ownership to each owner in percentages. What you should consider however, is what if your partners don’t want to sell the business or if you would like to sell only your part of the business.

• Business Alliance – Working alongside another business or partner(s) can often be highly beneficial. Strategic partners allow sharing of resources for marketing, products, manufacturing capabilities, funding, channels of distribution, expertise, capital equipment and more.

• Hiring a Team/Manager for take over – Once a business has grown and become established comes a point where it is more beneficial for the owner(s) to hire a new manager to take over operations, bring a fresh eye, new ideas to the table or hire a new team. This will assist in continuously growing the business. This can often resolve many of the issues a business has to eventually sell later for a higher profit.

• Refinance or Re-capitalize – If you find as a business owner that your business is declining, often refinancing the loan terms or selling equity off and refinancing the existing debt are good alternatives solutions to improve the business.

• Liquidate – If a business is seriously without money, often it is wiser to liquidate assets if the business is not worth much. Business owners can also liquidate assets that are no longer relevant or assisting with operational, revenue and business goals.