A full-price offer for their business, only 5 days after announcing it was for sale.
The owner rubbed his eyes and re-read the email. He hadn't misread it, the buyer was offering to fly across the country to meet them that weekend.
The week was a blur communicating with the buyer and reviewing the offer. But to the owners' disbelief, he received another full-price offer. Two full-price offers in a week.
Is this the story of a Silicon Valley start-up? No, this is the true story of a small-town business with only $150,000 in revenue.
Here's how they sold their business with DealBuilder:
1. They got prepared to sell
More than 80% of businesses fail to sell due to a lack of preparation. There are many reasons, but the most common reasons include:
- Over or undervaluing the business.
- Not having a buyer marketing package prepared.
- Not having a strategy to market the sale of the business.
The owners avoid these mistakes with DealBuilder:
- Using PriceBuilder, they calculated a reasonable asking price for their business.
- They created a professional buyer marketing package using DealBuilder's templates and examples. This also made sure they didn't miss any key information buyers look for.
- DealBuilder sent their listing announcement to 3,000+ buyers in their area.
2. They invested in the process
Selling your business is often more time expensive than money expensive. As you will spend most of your time meeting buyers and answering their questions (while also trying to run your business). It doesn't take long for these hours to become more expensive than paying for listing ads.
The owners knew that a great buyer presentation would save them time in the future. So the owners spent a few days thinking about what type of buyer was right for their business. With an idea of their potential buyer, they completed their DealBuilder presentation.
3. They added a personal touch
Buying an owner-operator business is like an international house swap. A buyer is swapping their current lifestyle for yours. Buying a business is less a financial decision than it is a life decision.
So paint a picture of their new lifestyle:
- How many hours do you work per week? Do you take 2 weeks of holidays or 2 months?
- Where is your business located? Is it a desirable city to live in? Is it good for young families or retirees?
- What is your favorite part of the job?
While these attributes may seem less important, they make all the difference. In this case, the business owner did an excellent job of adding details about their community and lifestyle.
4. They moved fast
When selling a small business, time kills deals. Deals fall apart when an owner takes too long to get information together.
The owner avoided this fate by being quick to respond to initial buyer questions. Because of this, they scheduled a buyer-seller meeting later that week. After the meeting, the owners quickly followed up with any outstanding information. This kept the conversation (and deal) moving forward.
The result? Both of the buyers felt comfortable enough to submit a Letter of Intent (LOI) within a week of listing. This is a testament to the trust the owners created in a short amount of time.
Planning the exit of your business?
Start by discovering how much your business is worth with PriceBuilder.