Miami Business Broker Advises How to Sell Your Business

David Currea is a Business Broker with Capital Business Solutions who has been bringing buyers and sellers of businesses together since 2008, working mainly in the area of Miami-Dade. For a free consultation or a valuation of your business, please feel free to reach David at (305) 331-9918 or dcurrea@capitalbbw.com. All conversations are completely confidential.

If you're looking to sell your business for the highest price while keeping the transaction moving forward smoothly, follow the tips below, and you'll be good to go:

Have Your Financials In Order - and Recasted - Before Listing The Business For Sale

You don't want to leave an interested buyer waiting for too long.

It's important they have a pretty clear idea of how your business is performing, in order to be able to move forward confidently.

Generally, you'd only provide buyers with a brief overview of the financial performance of your business, until they've made an offer (which you've accepted), and are in due diligence - at which point you provide more detailed financial statements.

In order to prepare this accurate overview, it's recommended you work with a business broker in order to "recast" the financials.

When recasting financials, a business broker will work with you to determine which expenses are personal or not related to the business (as well as large, one-time expenses), and add these back to the bottom line, reflecting a larger, more accurate net profit than what may appear on your financial statements.

Other "add-backs" include non-cash expenses such as interest, taxes, and depreciation, as well as the owner's salary.

This better reflects the real operation of the business, giving a buyer a better idea of what they could be earning when running the business.With your financials in order, you'll be ready to go to market and strike while the iron's hot when a buyer shows interest — without losing momentum.

Please note, this entire process is completely confidential, and buyers must sign a non-disclosure agreement and show proof of financial capability before any financial information is shared.

Get a Proper Business Valuation - The Price Must Be Right

After having your financials recasted, your business broker will now have an idea what your business is really producing.

Much like valuations in real estate, a business broker will use "comparables" — other businesses sold in the same industry, preferably of similar size and in the same area — in order to find out how much businesses similar to yours are selling for.

Your business broker will take the net profit of your business - this bottom line, including all "add-backs" - and multiply it by a similar multiplier of the net profit as these other businesses that have sold, in order to arrive at the price.

(The broker will either use the EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization - or SDE - Seller's Discretionary Earnings, sometimes known just as "Cash Flow).

It's important you price the business right — price it too high, and you run the risk of buyers not taking the time to take a look at it. Price it too low, and you'll be leaving money on the table!

Here at Capital Business Solutions, we use several different business valuation resources and are experts in the sweet science of valuations. Contact David Currea at (305) 331-9918 or dcurrea@capitalbbw.com for a free consultation regarding the potential sale of your business, or to get a valuation prepared on your business.

Expert Tip - See a Buyer's Point of View when Reaching Sticking Points in the Negotiation - A Skilled Broker Should Come Up with Solutions to Bring Both Sides Together

While we try to avoid it, most business deals can experience some turbulence... even when both sides set out with the best of intentions.

Buyers and sellers can at times can take opposing sides on a matter — as is expected — however, compromises and mutual agreements need to arise, if not, the deal can stall or fall apart altogether.

When both sides can keep an open mind, be reasonable and cooperate, a solution to almost any issue presented can be found that will keep the deal moving forward and both parties happy. A good business broker finds ways to creatively bridge these gaps and keep both parties on the same page as the deal progresses.

If Considering Selling Your Business, Don't Go it Alone - Trust a Business Broker to Guide the Way

If you're thinking about selling your business, you want a business broker - a realtor who specializes in the sale of businesses - to represent you on the sale. I mention this as opposed to a real estate agent, even a commercial agent.

The vast majority of times, a real estate agent who is not skilled in the sale of a business will not properly price your business, have the tools to get it in front of the right buyers, or know how to solve common issues that come up in business deals.

A business broker much better understands financials, business processes and concerns, properly pricing your business as well as the the importance of confidentiality on the sale of a business. The importance of NDA's, non-competes, SBA financing... there are so many aspects of a business sale, and this is where you want expertise in the area.

Business brokers also have the confidential marketing channels to get your opportunity in front of the right buyers, without putting you at unnecessary risk of employees, suppliers or competitors finding out about the sale.

In the state of Florida, the best business brokers are members of the Business Brokers of Florida (BBF) association. Members of the BBF must demonstrate their expertise and abilities in business brokerage, and adhere to a strict code of ethics.

If selling your business, don't go it alone, and don't go with the wrong representation. Reach out to a business broker and get the job done right.

About the Author - David Currea - Business Broker

David Currea is a business broker, licensed real estate agent and and an essential part of Capital Business Solutions' team of Miami business intermediaries. As a member of the Business Brokers of Florida (BBF), David has been successfully brokering business sales since 2008, handling transactions ranging from tens of thousands to several million dollars. If considering selling your business, please feel free to reach David for a valuation or a free, no-pressure consultation - (305) 331-9918 or dcurrea@capitalbbw.com.