Scottsdale Business Broker, Premier Sales Reveal Tips to Consider When Selling a Business - Yahoo! Finance
Press Release Source: Premier Sales On Wednesday July 7, 2010, 5:00 am EDT
SCOTTSDALE, AZ--(Marketwire - 07/07/10) - Bill Green, Senior Vice Provost and Dean of Undergraduate Education at the University of Miami, states, "Entrepreneurs renew society by constantly looking for opportunities to make products, institutions and practices better." As entrepreneurs establish a business, they usually intend to continue until their retirement. Often, an entrepreneur envisions that their child will step in one day and take over the business. However, with the increasingly mobile and fluctuating society and changes in cultural ideas, the child is often not interested or available to take over the business when the time comes.
As a result of this situation, the idea of buying and selling a business has become increasingly popular. Since Arizona has been one of the top states attracting entrepreneurs, there are a lot of business owners looking to transition into retirement. Unfortunately, there are many brokers who are not focused on the continuation of the business past the sale. Most entrepreneurs want to see the business they worked so hard to build carry on into the future. A true success, according to Diane Thomas at Premier Sales in Scottsdale, AZ, is when "the business continues to thrive, clients continue to be served and the employees continue to have jobs."
With buyers and sellers looking to get the most out of the transition, an important concern is that both parties have full disclosure of information, and that the business model fits the management style of the buyer. "A lot more goes into buying a business than there appears to be on the surface. It is important to take the time to understand the business and the value drivers, and then match that business with a buyer who sees the value and can envision the growth potential in that business," asserts Diane Thomas.
When preparing to buy or sell a business, the owner must ensure that a full financial disclosure has been conducted. The disclosure process may uncover some value or even debt that the owner did not realize existed. This disclosure protects both the buyer and seller and ensures a smooth transaction. Although the process can be a long one, retiring and new entrepreneurs must also realize that it will be well worth the time invested. When taking the time to do things right, the end will usually be a positive result with fewer surprises.
According to the most recent federal information, "Arizona has 396,318 small businesses. Of those, 107,018 have employees. The remaining 289,300 are Arizona small businesses that have no employees." Also the U.S. Small Business Administration states, "Seven out of ten new employer firms last at least two years, and about half survive five years. More specifically, according to new Census data, 69 percent of new employer establishments born to new firms in 2000 survived at least two years, and 51 percent survived five or more years. With most firms starting small, 99.8 percent of the new employer establishments were started by small firms. Survival rates were similar across states and major industries."
Due to the complex legalities and length of time involved in the transactional process, many business owners hire business brokers. The best brokers in the industry know how to find hidden value in each business and structure a balanced transaction where both sides win and the business is positioned to grow. They are able to prepare the buyer and seller for a smooth transition. This allows the business and its employees to continue functioning effectively, minimizing the distraction and having the customers experience a seamless transition of the business.
Continues Thomas, "Any entrepreneur selling their business wants to see their hard work maintained or increased in value after the transition. When the time and care are taken to ensure a proper match, there is a much higher success ratio, usually about 75% to 85%, leading to satisfied clients on both sides of the table."
For more information on Diane Thomas and Premier Sales, visit www.PremierSalesAz.com.
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