How Experts Can Help You Access the Most Equity When Selling Your Business
Post-pandemic, many business owners are finding themselves in the position of wanting to exit (or even, escape) their businesses. They’re ready to sell and move on to something else. But with so many different considerations and issues that can arise when it comes to selling a business, many owners end up just tabling the idea altogether.
Do you own your own business and feel this way? If so, we have good news for you: Working with the right professionals can both simplify and streamline the process, allowing you to actually access the equity you’ve been building up over the years. Cities like Odessa, Texas cause business owners to need more exposure due to the lack of a large market. Read on to learn more about the process of selling a business and why partnering with an expert in this area is a must.
What Motivates Owners to Start and Sell Their Businesses?
The power behind being an entrepreneur and starting your own business lies in your ability to build equity, and one day, to access that equity. Merriam-Webster defines equity as “the money value of a property (“Business”) or of an interest in a property (“Business”) in excess of claims or liens against it.” It’s probably the case that you started your business out of the desire to have more control over your own life instead of working for someone else. Not only could owning a business help you achieve freedom for your family, but it could also give you the opportunity to build and then access equity later in life.
But what does it look like when the time finally comes when you’re ready to acquire that equity? There are a few different things that might motivate you to sell your business; maybe you need the money to invest in a different business, start a different business, or even buy a different business. Someone else might want to access their equity so that they can retire or maybe even invest in more passive income like real estate.
For a more in-depth look at selling a business, check out this comprehensive and definitive guide. So while there could be many different factors motivating someone to sell their business, making the decision to sell is just the start. Actually figuring out how to access that equity is where things can get incredibly difficult and complicated.
Why You Need an Expert to Help You Access Your Equity
Partnering with a professional that has years of training and experience in business mergers and acquisitions is key to accessing the equity you’ve built over so many years. A professional that knows the Odessa area is essential for your business’s sale. Let’s explore a few reasons why this is true.
Accessing Expert Knowledge and Industry Standards
Working with an expert gives you access to in-depth industry knowledge that’s backed by years of experience. Let’s look at an example to see how beneficial this can be in practice. Maybe you own a business and one of the most beneficial things you’ve been able to do through owning that business is minimize your taxes. However, when it comes time to sell your business and attempt to access your equity, someone else will be paying you for it. And in order to pay you for that business, they need to understand how much money you are really making.
Because of the benefit you’ve received from minimizing your taxes, you might not know the most accurate answer to that question. It might be difficult for you to pinpoint the exact total value you’re getting year to year as the owner of that business. But an industry expert can help you quickly and simply figure that out. Professionals that have worked with business owners year after year have access to the standards and insight needed to answer that question-–as well as the many other questions that will no doubt come up during the selling process.
Finding the Right Buyer
Another reason you should partner with an expert is because they can help you find the right buyer. Here’s the deal: Not everyone will know how to do the things you know how to do when it comes to your business. The kinds of people who don’t know how to do what you do or even how your business works are not actually going to pay you the highest possible value for your business.
That’s why you need to work with a professional who not only has a large database of buyers, but who also is proficient in ensuring they’re locating qualified buyers for your business. Finding a buyer who has expertise in the area of your business can make the selling transition that much more smooth and beneficial for both parties.
Avoiding Scams and Financial Pitfalls
Do you use an attorney? Are you hoping they can guide you through the selling process? More often than not, attorneys charge by the hour, and selling a business can be incredibly time consuming. If not an attorney, then maybe you’ve considered a business broker. But this is where things become tricky: not all business brokers are properly trained. Many business brokers are trying to sell businesses by day while driving Ubers by night. Some might even try to demand big fees upfront without actually doing anything for you or your business.
That’s why we recommend working with a large firm that is solely dedicated to mergers and acquisitions and that has years of experience and successful sales to back them up. Finding the right business broker is crucial to ensuring that you get the most out of your equity and avoid wasting money on professionals who can’t actually help you.
Figuring Out Valuation
The final point is arguably the most important: valuation. How do you know you’re selling your business for the right value? Too many business owners end up selling their businesses for pennies on the dollar because they sell to an employee or maybe someone they know. They might even sell to a vendor or competitor because they don’t know any other way to sell their business and access their equity.
That’s where the power of partnering with someone like Sigma Mergers & Acquisitions comes in. Sigma business brokers can help you determine the real value of your business based on fact, not on emotion. We determine the valuation by looking at actual other businesses that have sold in your industry with your same type of revenue and your same type of profit. If you want to sell your business in Odessa, Texas, contact us today for a free business valuation. We can help you walk through the process of determining how to know you’re getting the most for your company possible.
The Benefit of Working With Sigma Mergers & Acquisitions
At Sigma Mergers & Acquisitions, we are solely committed to taking our partners’ businesses to market and guiding them through the process with expert experience and insight. It is because of our full-time commitment and effort that we are able to sell 97.1% of businesses that we list without ever charging any money upfront.
Selling a business is a process. Our experts will figure out how much you’re making and look at comps to see what you should be able to expect based on fact and industry insights rather than emotion. And if what we determine works for you, your budget, and your future goals, then we can take your business to market. Through a combination of video sims, business profiles, and our comprehensive database, we can help make sure that you get every ounce of equity out of your business so that you can be best positioned for whatever you have coming next. The real difference between us and the guy that’s selling businesses on a part-time basis is our full-time commitment and unwavering focus on you. Our goal is to help you get everything you possibly can out of your business so you can enter your next chapter better prepared.
Contact us today so that we can help you get one step closer to accessing your equity today.