As business brokers serving the Orlando and Central Florida we always hear preconceived notions from those looking to sell a business and not all of them are correct. Below are 5 myths about selling businesses in the Orlando area that business owners should know and recognize:
Unsolicited offers are always best when looking to sell a business in Orlando.
There are many potential buyers both in and out of Central Florida that would like to have more business in the area. Many are not shy about tossing offers over to many business owners in hopes that they catch an interested business owner. As you might imagine, these offers typically are not the most generous. In fact, it’s possible that many of these potential buyers are hoping to time things so that they find a potential business seller just before they decide to meet a business broker or consult their accountant or attorney. If you’re looking to potentially sell your business in the Orlando area or even if you’re not but are approached by someone asking if you would sell. Do your research first. Don’t assume that because the offer is unsolicited that you’re saving a ton of time and money. You might be leaving a great deal of money on the table and the time saved might be just a small amount. Consult a business broker in Orlando or Central Florida first. Most will meet with you at no cost because this is how they come across potential listings. There have been many times where business brokers at Crowne Atlantic meet with potential sellers and recommend they take their current offer. Other times we know the seller can do better.
Selling Your Business In Orlando On Your Own Without Assistance Is Optimal.
Most money-making businesses selling for more than $200k require the help of accountants, attorneys, real estate appraisers, and business brokers. From the business broker perspective, an owner can operate their business more effectively if they do not have to deal with business inquiries all day. When business brokers at Crowne Atlantic meet with potential business sellers that have tried to sell businesses themselves always complain about buyers that drag on the process with no progress, or buyers that have no money or buyers that they feel are just not skillful enough to run their business. In contrast business brokers work to help qualify each buyer to see if they have a potential applicable skill set to take over the business. Brokers ask and discuss the uncomfortable questions as to whether or not a potential buyer has the funds to purchase the business and helps direct buyers to the appropriate people that might be able to help with financing. Furthermore, business brokers help keep business sales confidential from the business’s customers and competitors and can make recommendations to the seller on the best buyers to work with.
Believing That A Deal Will Definitely Close No Matter What.
There are many catch phrases that illustrate the issues with this myth. Many say, “the deals not over until it’s over.” Others say, “the deals not over until the business seller has a check in their hands.” Business deals follow a process where items have to be taken care of in a timely manner or they might not get done. It’s the job of Orlando business brokers to set the pace of each deal and make sure deadlines are met. Does the buyer have all the due diligence their accountant requested? Does that accountant have further questions? Does the lender need more information? How should information about the buyer be packaged to the landlord to help get them approved? All of these issues sound super simple but often become very complicated and it is the business brokers role to make sure everyone stays on task. Deals can fall apart. Sometimes all it takes is a news event or a distant family member sharing an uninformed opinion. When it comes to selling businesses, most deals approach the edge of falling apart at least once or twice during the deal so it’s important to have professionals to help keep deals on track.
Business owners have to take earnouts and owner financing.
While it is true that there are many deals where business sellers in Central Florida hold some seller notes or include earnouts, these are not requirements. Many deals include these elements but often times if business owners consult with professionals and business brokers ahead of time, they can help guide business owners into positioning their businesses to qualify for SBA financing which helps owners keep their chances of owner financing to a minimum. One of the other functions that business brokers in Orlando serve is to let potential buyers know some of the seller’s expectations when it comes to financing and earnouts. In some unique cases these elements are needed, however they are not required for sellers even though buyers will often claim a seller will not be able to do a deal otherwise. I’m these instances speaking with an Orlando business broker, a professional lender and other professionals ahead of time can help potential business sellers explore their options.
No special preparation is necessary when looking to sell your business in Central Florida / Orlando.
Have you ever sold a car or a house? Did you wash and detail the car before you showed it to a potential buyer? Did you paint the house, mow the lawn and add a few plants when you showed your house? Prepping a business for sale is no different except a business owner needs to know what buyers are looking for. It helps to have a clean business area, good books and records, equipment in good condition, clean books and records and a reliable team to help operate the business. Our business brokers meet with owners looking to sell businesses throughout the mid-Florida area and we often consult with business owners way ahead of when they are planning on selling. We discuss with business sellers on how to organize their financials, their teams and their operations.
If you’re asking yourself, what I should I be paying attention to when I want to sell my business in the Orlando or Central Florida area call the Business Brokers at Crowne Atlantic at 407-478-4101.
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