Sell a Business - NEO Business Advisors
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Sell Side Brokerage Services

NEO Business Advisors offers business brokerage services coupled with industry expertise to anyone considering selling a manufacturing, industrial B2B service, or distribution business. Services include business valuations, exit strategies, brokerage services and many other subjects related to the sale or purchase of a business.

Is it time to sell your business?

Sell a Business

Whether you’re ready to retire, planning a strategic exit, pursuing a new venture, or have other reasons for considering the sale of your business; selling your business is a major decision.

Understanding the selling process, what to expect, and the facts about current business sales in your area is essential.

At NEO Business Advisors, we can help. Seeking guidance from a professional business broker can help you navigate the selling process and get you the very best price and terms for your life’s work.

We make selling simple

Our 3 Step Process

The idea of selling your business can feel overwhelming. We make it as simple as possible with our 3-step selling process to get you the very best price and terms for your life’s work. 

Step 1

Initial Consultation

You don’t have to make a commitment at this point; you are just getting informed. We will talk with you about the selling process and the benefits of working with a professional business broker. And, we want to learn more about you the business you have built. The goal of this step is to learn about one another and determine if it’s a fit to work together.

Step 2

Business Valuation

The first question almost every seller asks is: “What is my business worth?” Through our initial consultation and a confidential review of your financials, we can answer this question. We will use data driven methods to provide a fair market valuation of your business. Remember: Only the marketplace can decide the true value of your business.

Step 3

Listing Agreement

Once we agree that the fair market valuation is in line with your needs and expectations, we begin the process to list and market your business. This is where we formalize our relationship. We will execute a listing agreement and that's when the real work begins...for us! For you, it's business as usual with your focus on running your business.

Before You Put Your Business Up for Sale

Selling a business isn’t like selling a personal possession you no longer want. Making a split decision and prematurely advertising the sale of your business will put you at a serious disadvantage. Understanding your own motives for selling and gathering all of the necessary information will make you better prepared to move forward with the sale of your business.

Making the Choice to Sell

If you’ve made the decision to sell your business, you have a concrete reason and expectations. If you’re still feeling unsure, there may be a reason. These are the two most common questions asked by sellers.

  1. How much is my business worth?
  2. Do I really want to sell?

Answering these questions for yourself will likely illuminate whether you’re really ready to sell your business. Obviously, the answer to the first question won’t be the same for every business. However, there is a relevant answer that applies to every business sale. The potential worth of your business doesn’t matter. If you’re truly prepared to sell your business, you’ll be ready to sell for what the market is prepared to pay. With that in mind, the second question will likely answer itself.

Gather Information

To pitch your business to potential buyers, you need to have all of the relevant information at your fingertips.  Follow this checklist to get your paperwork in order.

  • Three years profit and loss statements
  • Federal income tax returns for the business
  • List of furniture, fixtures and equipment (FF&E)
  • List of inventory and work in process if applicable
  • Lease and lease-related documents if real estate is leased
  • Property records, taxes, and last appraised value if real estate is owned
  • List of loans against the business (include payments and payment schedule)
  • Equipment leases for any leased equipment
  • Franchise agreement if the business is a franchise

Ensure all paperwork and financial statements are as current and accurate as possible. Presentable financial statements show prospective buyers everything your business has to offer and why it is worth the investment of their time and money.

Understanding Your Buyers

You might be surprised to find out that your potential buyer’s reasons for purchasing your business aren’t that different from the reasons you want to sell. Just as a seller’s motive to sell is about more than money, a buyer’s must be also. A more likely motive for a buyer to purchase a business is the attempt to change their current employment situation.

Your Buyer’s Profile

Understanding your buyer is a crucial part of making the sale. While money is important, it’s rarely at the top of the priority list. A serious buyer is often more interested in investing in their own future as a businessperson without working beneath another employer. Most buyers have never owned a business before and are considering a business they hadn’t thought of before it was introduced to them. A serious buyer will have realistic expectations while being willing to take the risks necessary to start their own business.

What Buyers Want

If your buyer has serious intent to purchase your business, it’s vital to understand their expectations. Almost 50% of buyers will have less than $100,000 to invest in a business. The remaining funds will likely come from loans from family and acquaintances or professional lenders. These new business owners will need cash flow to generate income and repay these loans. You should be able to answer these questions from your potential buyer.

Preparing Your Business to Close the Deal

Your buyer is making an investment in your business and has no desire to pour significant funds into an operation that needs a serious upgrade. Everything in your business has some value and now is the time to polish those values until they shine. In the same way your business should look attractive to customers, it should appeal to potential buyers. Invest in necessary cosmetic upgrades like sign repairs, new carpet, and fresh paint.

Everything Has Value

Take additional time to prepare the unseen side of your business as well. Update your operations manual (if you don’t have one, you should create one immediately). While it’s not required to include these items in your sale, they can add significant value to your business and give a buyer more confidence in the business being a well-run operation. Don’t discount the value of customer lists, proprietary products, well-maintained equipment, secret recipes, customized software programs, or well-trained and tenured employees.

Maintain Transparency to Eliminate Surprises

By gathering and updating all of the necessary financial information, you have had the opportunity to reveal all of the important aspects of your business. This process gives you the opportunity to find and eliminate any problems that might arise and derail your sale. Ensure your business is free of legal, environmental, accounting, employee, or other potential problems and provide clear proof of these facts to your buyer. No one likes to be in the middle of an expensive investment only to find skeletons in the closet. Your transparency will make the sale process run smoothly, increase buyer confidence and speed closing.

Ready to Sell Your Business?

Selling your business is a process that takes a considerable amount of knowledge, dedication, and hard work. A professional business broker can make all the difference when it comes to the speed and success of your sale. 

Schedule a Call Today!

Click the Calendar Link below to schedule a FREE, No-Obligation, 30-minute consultation with an expert business broker today. We will discuss the selling process, what to expect, and the facts about current business sales in your industry. 

NEO Business Advisors, holds all conversations confidentially

We are focused on your industry

Industries Served

NEO Business Advisors specializes in manufacturing, industrial B2B service, and distribution businesses in Northeast Ohio.

Manufacturing

Machining

Fabrication

CNC Machining

Welding

Injection Molding

Thermoforming

Chemical

Electronics

Safety

Environmental

Distribution

Transportation

Landscaping

B2B Service