Businesses in the St. Cloud, MN area fall into three general categories. The first is a small business or a startup, generally a business with a revenue of less than five million dollars. A mid-market business has between five and fifty million dollars in revenue and a large business will have in excess of fifty million dollars in revenue.
Typically with the higher end of the small business group and the mid-market types of businesses, hiring business selling advisors is an important first step in the process. These professionals are experts at marketing businesses in this revenue range, and they have extensive targeted buyers that are qualified and interested in businesses in all areas of the state and perhaps across the country.
Before hiring a professional business sales advisor in St. Cloud, MN, it will be important to complete a thorough review of the advisor and the company they work for. This will give you confidence in choosing the most qualified and professional business selling advisors to handle the sale of your company.
Industry Experience in Essential
Every type of industry is different, and selling a gas station is much different than selling a manufacturing company or an upscale restaurant. Knowing the market and the industry is going to be essential for the business advisor hired. Don’t be afraid to ask for specific information on past sales of businesses similar to yours and to request references and follow up with those individuals.
Valuation and Methods
A very important initial task for any business selling advisors will be to complete a valuation or a value estimation to determine a fair market price for the business. This is a complex process that should never be completed with a quick pencil sketch idea of the business finances
Ask about the valuation method used, and also be prepared to discuss how the final value was developed. Remember, it is not uncommon for the value estimate to be slightly different than the asking price, but over or undervaluing the business will be a problem.
The Process
Ask about the process of the sale of the business, including how marketing is completed, how information is shared with prospective buyers, and how the business advisor is able to provide confidentiality with regards to the sale.
It will typically be important to keep the sale out of the public eye, especially until the sale is completed. This will prevent issues with the customer base potentially moving their business to a competitor if they interpret the sale to mean the business is in trouble.
Understanding the complete process, including how the business advisor will market the business, will give you a full overview of what you can expect. This, in turn, will provide you with the confidence to choose the right professional to handle your business sale.
