Sell My Business Fast - Strategies to Expedite the Sales Process
Whether you are looking to take a break, invest in a new project, or retire, you must have wondered, ‘How can I sell my business fast’?
The sales process can be a complex yet rewarding journey, and you are right to worry about how fast you can complete it. You don't have to worry anymore.
We'll share proven strategies to sell your business sooner while maximizing its value.
TL;DR - Strategies to Sell Your Business Fast
Here's what you can do to sell your business fast:
Start exit planning early
Market your business strategically
Understand your business's value
Determine the ideal time to sell
Hire professionals to help with the sale
Before we discuss these strategies in detail, we recognize that timeline isn't the only concern when selling your business. You'll want to sell at the best price possible, and we can help you achieve that.
At Exitwise, we help you recruit and manage the best M&A experts to help sell your business quickly at the highest purchase price possible.
We'll help you find the necessary M&A attorneys, accountants, wealth advisors, and investment bankers to actualize your sale. Schedule a conversation with our team today!
How Long Does It Take to Sell a Business?
The time it takes to sell a business typically ranges between one month and a year, but it can be longer in some cases.
Some key factors that influence the sale timeline include your preparedness, business reputation, type of buyer, financial health, and the type of business.
Let's look at the sale process to see why you should expect a one-month to one-year timeline.
The Process of Selling a Business
To understand how to sell a business quickly, it's important to first understand the entire process.
Here's what the sell-side M&A process looks like:
Preparing for the Sale: Preparation involves getting your financial documents in order, hiring M&A experts, having the right experts prepare marketing documents, and looking for and qualifying potential buyers.
Valuing Your Business: Your M&A experts can help you value your business using one or several valuation methods. For a preliminary valuation and to get an idea of how much your business is worth, check out our free valuation calculator.
Due Diligence: Conducting reverse due diligence and diligence on the buyer are key steps to maximizing your business's value and finding a more interested buyer.
Negotiating with Buyers: Your M&A experts can shortlist the most promising buyers and negotiate on your behalf regarding the purchase price, payment terms, and deal structure.
Closing the Sale and Transitioning: After settling on your preferred buyer, you can sign a sale and purchase agreement and execute the transaction.
Note: Contrary to popular belief, the process doesn't end after the sale. You may have to help the buyer during the transition and integration period.
5 Strategies to Sell Your Business Fast
Selling a business can be lengthy and draining, but a faster exit can bring peace of mind.
You can use the following strategies to expedite the process:
1. Start Exit Planning Early
You've probably come across the saying that you should always envision your business exit as soon as you start.
While this may sound counterintuitive, it's actually a valuable strategy because it keeps you on your toes, allowing you to always look for ways to maximize business value.
Starting your exit strategy early can help in ways such as:
Better Personal Preparedness: Early planning helps you prepare psychologically and emotionally to let go of your business. You can also identify and validate your reasons for selling. Focusing on finding the best buyer will be easier, such as one who shares your passions so they can continue your business legacy.
Constant Education: You can educate yourself constantly through research on how to sell your business like you are doing right now! You can also educate your team so they are prepared to help you sell faster.
Set Realistic Expectations: Planning early helps you have a realistic timeline for the sale.
Gathering Your Documents Early: You can organize your financials and essential documents early to help speed up the due diligence process.
2. Market Your Business Strategically
Marketing your business doesn't have to be a chore.
Here's how you can market faster and more effectively:
Determine the Ideal Buyer: Your ideal buyer can be an individual, an employee through an ESOP, a private equity firm, or a competitor. Create a customized marketing plan and use direct marketing to contact buyers, using a third party to maintain your anonymity.
Market on the Internet: Marketing on the web can help you find a willing buyer sooner, especially one who shares your interests and is enthusiastic about your line of business. Social media is a great place to start. Also, try sites like BizBuySell and BizQuest.
Market within Your Industry: Reach out to potential buyers in your industry through trade magazines and publications. This step is crucial if you need a qualified and experienced buyer in a specific profession, such as medicine or law.
Enlist the Help of M&A Teams: M&A advisors can help you market your business outside your industry by reaching out to their wider pool of prospective buyers and using web and print media.
3. Understand Your Business's Value
Knowing how much your business is worth can help you sell faster because you can set a fair price and attract serious potential buyers sooner.
If you overestimate how much you can sell your business for and overprice it, you risk discouraging prospective buyers. Finding a ready buyer would take longer.
The secret is to balance your business’s value, how much it can sell for, and your proposed sale price.
4. Determine the Ideal Time to Sell
Good timing for the sale can lead to a faster sale and higher price. The best time to sell is typically when the general or industry market conditions are favorable, and your business is thriving.
You'll want to understand your business thoroughly and keep your ear on the ground for ideal market or industry trends.
5. Hire Professionals to Help with the Sale
You can sell your business faster if you use the right professionals. They can speed up aspects such as business valuation, finding buyers, negotiating the sale price, and closing the sale.
Take your time to hire experts like business brokers, M&A attorneys, tax accountants, wealth advisors, and business appraisers to help you market the business and find qualified buyers.
Hiring and managing these professionals can be overwhelming, but you don't have to do it alone when you have a reliable partner like Exitwise.
Exitwise Hires M&A Experts to Sell Businesses Quickly
When you consult with us at Exitwise, we'll connect you with the best M&A professionals in your industry to help you sell fast and for the highest possible take-home amount.
We follow a proven three-step process:
After your initial consultation, during which we learn more about your business and the pending sale, we'll connect you with pre-vetted M&A experts.
We also help you interview and hire the right experts, including negotiating with them on your behalf regarding fees and the terms of engagement.
Once all the engagement agreements are signed, we get to work, helping you manage the team throughout the process to ensure you secure a favorable sale.
Consult with us today to speed up and maximize your exit.
Common Mistakes to Avoid when Selling a Business at Short Notice
Making mistakes is understandable, but you don't have to make them in the first place if you recognize them.
Here are a few you might want to steer clear of:
Not Letting Go: You may find it difficult to release your business psychologically and emotionally after years of dedication and attachment. The sale process may slow down as you try to adjust, and you may also lose the best time to sell.
Poor Reverse Due Diligence: Conducting internal due diligence on yourself and your business poorly may lead to a botched sale. For example, you may fail to identify weaknesses buyers could find easily and walk away. These weaknesses can be a stepping stone to improving the value of your business before the sale.
Poor Due Diligence on the Buyer: You'll want a buyer who can pay easily, maintain all of your legacy or part of it, and keep your employees on board. Without proper due diligence, it's difficult to vet them along such lines. You may find yourself disqualifying the buyer too late, which would require repeating the process in part or as a whole.
Focusing on Only One Buyer: Since they may also be eyeing other target businesses, your buyer may pull away from the deal if they find a more favorable one. Protect your interests by looking at multiple buyers simultaneously and ensuring the buyer declares interest through a letter of intent to buy the business, signing an M&A NDA, and providing any information you might require about them or their business.
Disclosing Sensitive Information Too Early: Your chances of a quick sale may reduce if you share sensitive information prematurely before your potential buyers sign NDAs. If a leak occurs, your anonymity and reputation may be at risk.
Frequently Asked Questions (FAQs)
Here are answers to some common questions about selling a business fast:
What's the Quickest Way to Sell a Business?
Accepting an unsolicited buy offer is one of the quickest ways to sell a business. These usually come from competitors.
The catch is that you must take your time to understand their motive because they may be looking to buy your business and shut it down to eliminate you as a competitor.
How Hard Is It to Sell a Small Business?
Selling a small business may be hard. The process is lengthy, complex, and draining. Selling can get even more challenging if you are indispensable as the founder, owner, or owner-operator.
However, you don't have to struggle with the sale if you hire and manage experienced industry-specific M&A experts with the help of Exitwise.
How Do You Value a Business Quickly?
You can value your business quickly using rule of thumb methods and online valuation calculators.
However, you'll want to seek professional assistance for a more comprehensive valuation, even if it takes a bit longer.
Conclusion
Now you have a reliable answer to the question, ‘How can I sell my business fast?’
We've examined different strategies, including starting exit planning as early as the day you start your business and hiring the right experts to help you.
You can work with us at Exitwise to hire the best experts to help you sell sooner. Here's how we help our clients sell better.
