Thinking of Selling your Business?
It may be worth more than you think. Shall we roll up our sleeves and find out?
Getting your business ready for sale and determining the right price to ask can be daunting.
The impact of this decision is major and could change your life forever. So, where do you start, and how do you even begin to value your business? If you are stuck, it's not your fault, and believe me, you are not the only one trying to figure this out.
Did you know that only 17% of businesses that were listed for sale in 2016 were actually sold?
I didn't, and it is crazy that so few actually sold. I am still looking for the statistic of how many of those that didn't, simply closed their doors.
My team and I did a lot of research to find this fact and we found it from the leading business listing directory, BizBuySell.com. Their Insight Report states that 7,814 businesses were sold in 2016 compared to approximately 45,000 for sale at any given time.
This means that only 17.36% of businesses for sale in 2016 were sold! Even if you round up to 20% which would be 9,000 businesses sold, the math still says that 1 in every 5 businesses were sold in 2016.
Why are so few businesses for sale, NOT selling?
We can speculate about why the number of businesses sold is so low, but after 30 years of buying, selling, funding and starting small businesses, I can tell you that the owners of many of these businesses want to sell, but are simply not prepared, or worse, getting poor information and advice.
Harsh? Probably, but it is rarely the fault of the business owner. Sure there's plenty of blame to go around; and yes, we all share some culpability, but the fault lies primarily with those who are giving the wrong advice to the right people or the right advice to the wrong people. Most are well intentioned but don't have the practical experience to know what it takes to prepare a business to maximize current value, and create a vision for a buyer to maximize future earnings.
Since I'm assigning blame, I can't ignore those who lend credit unabashedly without mentorship or guidance. The number two stressor for business owners is excessive debt. I get calls all the time trying to figure out how to manage the debt load they've accumulated based on "build it and they will come" or an unfounded "law of attraction" mindset.
Even Venture Capitalists (VCs) get caught up in this speculation versus investment psyche and either provide the wrong guidance or limit business success by micromanaging and limiting creativity...
Whoa. Sorry, I guess I got on my soap box there. I hope you'll forgive me, but I really care about your success.
Are you still ready to sell your business? If so, how do you avoid becoming part of the 80% of businesses left unsold?
My grandfather always said he'd "rather be lucky than good," and I'm sure you've heard that "Luck is when preparation meets opportunity." By taking the time to adequately prepare your business for sale BEFORE bringing it to market, you have a far better chance of selling it in a timely manner.
Benjamin Franklin said, "By failing to prepare, you are preparing to fail." Shall we roll up our sleeves and get your business prepared and priced for sale?
If I were you, I'd be asking, "What can I do myself to prepare my business for sale?" I'm just like you, I want to do as much myself: you know like compiling documents, cleaning up the financials, cleaning up the inventory, that stuff.
Most business owners rarely even start preparing because of fear of doing it wrong or they simply don't know where to begin. Rest easy, there are many Due Diligence checklists out there for you to use and reference. And don't worry about doing it wrong, just get started and we can fix it later. The most challenging part of this is just getting started. So go for it!
Okay, so I mentioned the Due-Diligence process, this is something we review and offer suggestions on how to best gather everything you may need. We also look at the best methodologies for recasting your financial statements to take into account all of your discretionary earnings. We use this for businesses less than $5 million in revenue and may at times use it up to $15 million in revenue, depending on the industry.
The Discretionary Earnings Analysis is the single best way to arrive at a proper valuation for main street and lower middle market businesses like yours. This helps us in pricing the business the right way.
We don't want to just prep your business for sale, we actually want to sell it, right?
Well, this is exactly what we show you how to do in our one day workshop:
"The Intelligent Small Business Seller"
So who am I and why should you hear what I have to say?
I’m Randall Thompson and I have been buying, starting, funding, and selling businesses for over 3 decades in many industries.
I was awarded Businessman of the Year in 2003 and again in 2005 in two different states for two different businesses. I served on the Business Advisory Council to Congress from 2001 through 2007 and was awarded the Congressional Medal of Distinction for my efforts to help Small Businesses succeed.
I write articles and teach Continuing Education Workshops for accountants, attorneys, and Private Equity Groups. I am also regularly asked to speak on major University campuses to business and entrepreneur classes. I am currently authoring two books: The Intelligent Small Business Seller and The Intelligent Small Business Buyer which I plan on having available in Q1 of 2018.
Most importantly, I have bought & sold, started and gotten funding for over 60 business
I was asked to assist with two consecutive large mergers within 24 months which ultimately merged into Verizon; I lost one of my companies that I grew to $80 million in revenue to a painful hostile takeover (yes, it sucked), and helped take one company through an IPO (Paladyne) which I have vowed not to do again because the result, after a lot of pain & agony and spend on attorneys and CPAs, was merely “Meh.”… but never say never, right?
So why is this important? Because I am one of you.
My heart and soul yearns for the success of small business, in fact I believe the only way to repair the economic strength of our country is to rebuild the middle class, and the only way to do that is one small business at a time.
You don’t deserve to be stuck. You don’t deserve to be weary. You don’t deserve to allow your legacy to just fade away. Your business may truly be worth more than you realize, but if you have size and esteem issues you may think it is worth way more than it actually is.
Only one way to find out, join us at one of our monthly workshops where you can remain somewhat anonymous, yet sit among your peers, and determine a real valuation range for your business.
Here’s what you’ll get:
In an effort to understand the important elements to focus on to sell your business for top dollar we will delve into 5 topics:
How ready am I to Sell? Should I Sell? Can I Sell?
The Decision to sell your business is a big deal, but how do you know if you are ready? How do you know it is really the best choice for you? What are my options?
In this section we will go through an assessment that will help determine your readiness. Explore timing for potential sale, as well as any hindrances that may exist, that may preclude sale.
We will also begin making a plan for what the next best steps will be for you.
How Do I Value My Business?
This is probably the part that everyone is most eager to learn about and I promise not to hold back.
As an experienced buyer and seller and Business Broker, I will show you the best practices and systems for determining current value and how you may be undervaluing (or sometimes overvaluing) your business.
The biggest secret to this is having a CLEAN financial statement. All of your financial statements must be cleaned, scrubbed and ready for presentation. You will discover how to ethically “recast” them for a buyer to see the best opportunity for future earnings. Bring your business financials if you would like. I love doing hot seats.
We will also be going over several financial statement case studies throughout the day.
How Do I Find A Buyer?
You can’t sell your business if there isn’t a ready, willing and able buyer to buy it, right? So how do you find them?
We will uncover some techniques and unexpected resources to find them.
What Do I Need to do to Prepare my Business for Sale to Optimize Current Value?
Okay, so imagine this: You know what your business is likely worth. You have a prospective buyer. They finally offer you less money than what you hoped. How do you know if it is a fair offer? What can I do to potentially increase the value of my business?
In this section we will explore the Due Diligence process. This is the process of “Discovery” that a buyer will go through to determine the “real” value of the business and that the numbers conveyed are real. They also want to know what they can do, after they buy the business, to maximize future earnings.
The Due Diligence Process allows for that discovery and the “cleaner” the numbers are presented, and the more you can show the opportunity the business holds, the more the buyer wonders why you are selling the business which increases its desire and its value.
Advanced Methods to Increase Value
At the end of the day we will unpack advanced ways to show more value in your business.
This section is worth at least 100x the investment since each of these could add $100k potentially to your business revenue. In fact, some past clients decided not to sell their business after learning some of these methods.
Sounds great right?! But just in case you are still on the fence about participating in this workshop...
This workshop is for you if:
You are ready to sell, but don’t know where to start
You're uncertain what your business is worth, or want to increase its value
You feel like your business runs your life and you're looking for an out (we can call it retirement if you prefer)
You have a need to sell your business due to personal, financial, or health reasons and feel crushed by daunting thoughts of doing it alone
This workshop is not for you if:
You’re looking for the basic information on selling a business that you get answers to online
You already ‘know’ what your business is worth and real world case studies on how to get prepare your business for sale isn’t of interest
You are not willing to put in the work to prevent your legacy from lapsing by shutting down you business
Live Workshop in North Barring, Greater Chicago Area
Next Available Dates:
March 22: Limited Seating Available
To recap, here's what you'll get when you register today for 'The Intelligent Small Business Seller' full day workshop…
In Person Workshop
- A Blueprint to Determine Your Business' Value Range+ How to Make Yourself 'Dispensable' and Implement Business Systems
- Advanced Ways to Increase Earnings and a Vision for Future Earnings
- A Checklist of What to Look for and Expect from Great Advisors like Accountants and Attourneys
- A Due Diligence Template to get your Financials and other Documents in order that will Optimize Current Value
- How and Where to Find the Best Buyer for your Business
- Real World Case Studies and Options for Collaborative Deal Structures; What Works and What Hasn't, and Why
- This is a Very Full Workshop with many Real World Examples and Advanced Resources that will Help you Prepare your Businses for Sale
Grab one of the limited seats this month
The value of the information, experiential models, and the take home resources and templates for this workshop exceeds $30,000...
But I really want this information accessible to you and I don’t want you to pay that much.
The groups that I have worked with to beta test everything you’ll get from this workshop, tell me I should charge $5,000 or more per seat and use the workshop as a platform to sell our services…
I threw that notion out and my advisors are furious with me.
As I said earlier I view this as a public service and desperately long for small business owners to have the opportunity to exit a business gracefully, with dignity and with a fair selling price. So I am offering this full day to a limited number of attendees at a fraction of the value you’ll be getting. $998.
This price is rock bottom and the workshop embraces my motto of under promise and over deliver.
This could very well be the best $998 you’ve ever invested. Thank you for listening. I look forward to meeting you and discovering ways to optimize your business’ selling price and to get it sold.
See you at the workshop!
Click the button to join us in rolling up our sleeves to find the real value of your business!
ANSWERS TO FREQUENTLY ASKED QUESTIONS
What if I don’t know if I want to sell my business?
We are not telling you that you HAVE to sell your business. In fact, making the decision to sell your business in the first place can be a tough one.
Depending on your circumstance it may be the best option that you have. Click the link below for an article that talks to the top 5 reasons people want to sell their business and decide for yourself.
I am looking to buy businesses, not sell them. Would I still get value from this workshop?
While The “Ready to Sell?” workshop is not geared toward you there is value to understanding what is going through the mind of a seller.
Who knows, this could change your perception and convince you to sell instead! Keep in mind that it will be up to you to gleam what you will for your own uses at this workshop.
If you attend, don’t come with the intention of cherry-picking businesses at the event. That is not what this event is for and you may be asked to leave without a refund.
GET STARTED TODAY
So what are you waiting for? There are only so many seats available! Sign up now to reserve your seat! “Ready to Sell?”