Preparing to sell a business requires the same diligence as running it - The Denver Post

A crisis is looming for business owners wanting to sell their companies.

Currently, 80 percent of business owners of small- and middle-market companies who put their businesses up for sale never close the transaction. The reasons: poor planning and over-valuation.

With the impending baby- boomer tsunami, more businesses will be for sale than at any other point in history, creating a buyer's market. This will cause significant competition, and businesses that do not plan well or overvalue their companies will be left out in the cold.

Many strategic and financial buyers with significant funds to invest are more cautious and reluctant to pay premiums for companies than a few years ago. To ready a business for sale, there are three critical steps to take to significantly increase the chances of closing a deal.

Think like a buyer. Most buyers want to purchase a company that has the following characteristics:

• A proven entrepreneurial management team in place who can continue rapid growth and expansion after the transaction closes. Most buyers do not want to replace current management of the company they are buying. Doing so adds a risk profile that could endanger the viability of the business going forward.

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Preparing to sell a business requires the same diligence as running it - The Denver Post:

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.