Tips on How to Sell Your Business from Top Miami Business Broker | Business Valuation Expert

David Currea is a business broker who’s been selling businesses in Miami-Dade since 2008. For a free consultation or a valuation of your business, please feel free to reach him at (305) 331-9918 or dcurrea@capitalbbw.com.

If looking to sell a business for the highest price, and with the least amount of hassle, heed the following advice, and you’ll be in a good position moving forward…

Get Your Financials In Order Before Listing The Business For Sale

Down here we often joke about being on “Miami time” when running late – but in the case of selling businesses, keeping a buyer waiting for too long is not the best idea, especially when they’re motivated and ready to go. 

If you waste too much of someone’s time, you run the risk of them losing interest, moving onto other businesses, or no longer taking your opportunity seriously. As they say, “time kills all deals”, and unfortunately, this quite often proves to be true, especially with all the options that buyers have.

A good business broker will work with you and your accountant to gather all the necessary info a buyer would need to see when evaluating your business, and get all your ducks in a row before going out to market.

This Should Include At Least Three Years of Financials Reflecting the Actual Performance of Your Business

Ideally, you will have tax returns for the last three years where you declared all revenue.

However, as business brokers we regularly encounter tax returns where creative accounting was done in order to avoid paying excessive taxes.

A good business broker will know how to recast your financials by determining certain addbacks, such as personal / non-business expenses and one-time, non-recurring expenses. These are added back to the bottom line so a prospective buyer will have a better understanding of the real profit they will see when running the business.

Other ways of verifying the performance of the business are:

• Profit & loss statements
• Bank statements
• Verifiable invoices to customers for cash payments
• Any other internal financial record-keeping system you may have in place

Once gain, your business broker will guide you here.

Get a Proper Business Valuation Done – Setting the Right Price Is Key

After recasting your financials, a business broker will determine the real cash flow of the business, either in the form of EBITDA or SDE.

Using this figure, they will find comparable businesses that have sold in your industry, with similar revenue, profit, etc., and have an understanding of what similar businesses in your industry are selling for.

We like to go to market on the higher end of this range.

You want to be realistic with your asking price. Some business owners may believe their business is worth millions — which we understand, to them it might be — but in some cases buyers won’t be willing to pay as much due the level of cash flow. This is not to say your business may not be worth millions! Many are.

However, the risk here is, if you sell for too high, and buyers don’t take your opportunity seriously, you may not best take advantage of the initial rush of buyers that bring some of the best opportunities… but on the flip side, if you sell for too low, you’ll be leaving money on the table!

Allowing a business broker to prepare a proper valuation on your business is of the utmost importance before you list it for sale, so you can ask for what you deserve — and what the business can sell for.

Work with the Buyer and Be Fair – Deals Where Both Sides Work Together Have the Best Chance of Closing

Business deals can get a little “rocky” at times. Buyers and sellers may take opposing sides on an issue, draw a line in the sand, and the deal can come to a stand still, or break down altogether.

When selling a business, putting yourself in the buyer’s shoes will help you better understand their position. Generally, buyers – just like sellers – are trying to move forward carefully, and don’t want to make any mistakes along the way.

This is where a good business broker can come in and create solutions to tough sticking points in the deal. If both sides can cooperate and keep an open mind, a solution to almost any issue presented can be found that will keep the deal moving forward and towards the closing table.

Always Trust a Business Broker to Guide the Way

When it comes to selling a business — as opposed to real estate of any kind, even commercial — you want a broker who specializes in the sale of businesses to help you with the sale. Business brokers are much more familiar with numbers, financials, business processes in general, as well the unique business sales process, as opposed to other types of real estate agents.

Note: All business brokers in the state of Florida must be licensed real estate agents as well, and often do have traditional real estate knowledge. Business sales often include real estate in the deal.

If in the state of Florida, check that the business broker is a member of the Business Brokers of Florida (BBF) association. Members of the BBF must demonstrate their expertise and ability in business brokerage, and adhere to a strict code of ethics. They are among the best in the business of selling businesses.

About the Author – David Currea – Business Broker

David Currea is a BBF member, licensed real estate agent and and essential part of Capital Business Solutions’ team of Miami business brokers. David has been selling businesses since 2008, and has brokered transactions ranging from tens of thousands up into several millions of dollars. If in the area of Miami, and considering selling your business, please feel free to reach David for a valuation or free consultation on the sales process – (305) 331-9918 or dcurrea@capitalbbw.com.