How To Sell Your Business Faster With Pre-approved Financing
All you Need to Know when Selling a Business
Finally, you are ready to sell your business. However, you are not sure where to begin or how to go about selling your business. Selling a business can be rather complex and take months — even years, to complete.
For that reason, there are some tips you must know for selling your business.
How to Sell a Business Quickly
Once you have started the process of selling your business, you need to analyze the state of your business and the short- and long-term goals you are pursuing with the transaction. It’s important to have a good exit strategy just like you did with your growth plan. This will be the key to success.
It is important that at the time of the sale you know very well what your financial situation is, and your profit and loss statement, among others. In addition, it can be interesting to have the help of experts in this type of transaction since, probably, it is the first time that you carry out the sale of a business. Working with brokers and having pre-approved financing for your business sale can help you find the perfect buyer and close the sale in the shortest time.
What are the Objectives of the Sale?
As in any business strategy, the sale of your company also requires that you establish some objectives for the transaction. You should ask yourself if you want to sell 100% of the business or just a part, if you will be open to selling it to an unknown buyer or if you prefer to sell your business to an acquaintance or family member.
Setting clear goals will help you rule out options that are not aligned with them.
What is the Financial Situation?
Having this information is critical for selling your business correctly and not running the risk of selling too high or too low.
Also, another important aspect will be the preparation of your P&L. Presenting clear and organized financial statements can increase the value of your business to potential buyers. Your profit and loss statement will provide detailed information about that income and expenses and will be very helpful in calculating your working capital.
Listing your Business for Sale: Working with Brokers
If you have already considered selling your business, it is likely that you know what a broker is. They act as intermediaries in the transaction, facilitating it. As you already know, the process of selling a business can be much more complicated than expected, so our recommendation is that you do it accompanied by these professionals.
However, there are some aspects that you must take into account when choosing a broker for your sales process.
- The first thing you should take into account is the experience that they have in selling businesses like yours; the more deals like yours they have closed, the better they will be able to carry out your process.
- Another very important aspect is their online presence. If what you want is to find that ideal buyer, you will have to be able to attract qualified buyers interested in your business. For this it is essential that the broker you choose knows how to move in the digital world, presenting your business before the more qualified buyers.
- The process of selling your business involves working with different players in the market; lawyers, accountants, bankers, appraisers, lenders… The network of contacts and relationships of the broker you choose can greatly simplify this process. If you have a good network of contacts, you will surely have been operating in this sector for quite some time.
- Identifying those qualified buyers for your business will be another fundamental aspect. Choose well the broker that will accompany you in this process because their database of potential buyers will be at your disposal.
Business Sale Loans: Working with Lenders
Getting pre-approved financing for selling your business can be a competitive advantage for attracting potential buyers. Many of them cannot acquire the business they are interested in due to financing restrictions. Listing your business with pre-approved financing can better position it and expand the options for success in a shorter time.
For that reason, in the process of selling your business, it is highly recommended that you meet these lenders that offer revenue-based financing for business acquisitions.
On many occasions, brokers and lenders form the perfect tandem for selling your business: they increase the volume of qualified buyers, offering pre-approved financing that will make your business more attractive.
Accessing this financing can be a headache. The following 5 steps detail how you can pre-qualify your business to prepare the groundwork to finance your business.
Reasons for Selling a Business with Pre-approved Financing
To conclude this article, we would like to offer you a series of reasons why pre-approved financing may interest you to sell your business. These reasons arise from the experience gained with sellers like you.
- First of all, mention the advantages that this type of pre-approved financing has for the acquisition of a business with respect to other sources of financing. Minimal risk. Finance up to 80% of the acquisition price without personal guarantees or dilution required. This model is very fast. Qualify your business in 48 hours and financing will be available to the buyer in 7 days.
- Working with pre-approved financing for the sale of your business will make the process much more competitive. You will be able to attract a greater number of qualified buyers interested in your business.
- Another very important aspect is related to time. In our own experience, businesses for sale with pre-approved financing close in about 45 days, while the average without such financing is 3 months. This supposes greater agility of the process that allows you to meet your deadline.
To sum up
If you are thinking of selling your business, it is very important that you are prepared for the process. Sometimes it can be more complicated than expected.
First of all, you must identify your objectives behind the sale of your business and know perfectly the state of your finances. It is also very important that you work with professionals who can expedite the process thanks to their experience.
Getting pre-approved financing for your business can make it more attractive to potential buyers. This way the sales process will be more competitive and faster.
Buying an online business? We can finance your acquisition. Selling a business? Increase your chances of selling and get a better valuation by offering our financing to the buyer.
Boopos is a financial platform providing non-dilutive revenue-based financing for M&A. Our core focus is on SaaS and eCommerce businesses, both Amazon and other marketplaces, and D2C. We work with entrepreneurs or aggregators who want to buy a business as well as with brokers and owners who want to sell their business.