When you finally have that “ah ha” moment and you decide to sell your business, I strongly recommended talking to a business broker first.
One of the most common things I see time after time is business owners undervaluing their own company.
Today, I had the opportunity to speak with a business owner who has two restaurants. He listed his two restaurants for sale by himself for $250,000 each (total $500,000). That sounds like a good amount, but what he didn’t know was his industry can get a 2 to 3 times multiplier in his region for his business. With his net and discretionary profits exceeding $500,000 dollars, he really can sell his restaurants for $1M to $1.5M depending on some factors.
Here’s why you should speak to a business broker before you list your business by yourself:
With Texas Business Brokers, there is never a charge until the business is sold for the clients desired amount. This means you can get a completely free business valuation that will (1) determine the true value and suggested sales price, (2) help you get all items needed for the sales process, and (3) determine if using a business broker is right for you and if the commission fee is worth spending.
In my clients case, paying our broker fee would still earn him $400,000 to $850,000 more than he initially expected. We usually pay for ourselves and get more money in your pocket. So, before listing your business, call and interview a few brokers. See what they can offer you and get help figuring out the best sales price. It may lead to an extra half million dollars in your pocket.
About Texas Business Brokers
We are Texas market specialists with over 10 years of experience. Our specialty is selling all types of businesses. – We are from Texas and for Texas. We have offices in Austin, Dallas, Houston, and San Antonio. Please contact us if you have any questions or want to learn more.