Selling a Lower Middle Market Business, by our definitionâ€¦a Company with less than $1,000,000 in annual owner benefit or EBITDA, is one of the most misunderstood and poorly managed processes in small business today. This is unfortunate too, because a lot of high-energy, risk-taking entrepreneurs have spent years bare-knuckle brawling with lenders, suppliers, employees, competitors and governments to provide for families, create wealth and provide jobs and service to their communities and one might think exiting for other opportunities or the golden years would be rewarding.
To have the advantage, or at least an opportunity to get to the closing table, you must see the business through the eyes of a buyer and lender, so youâ€™re prepared for the incoming fire that will inevitably come your way. Buyers and sellers are at cross-purposes when it comes to terms and conditions of a sale so knowing how to proceed once the swords are crossed is critical. What is positive for the seller is usually negative for the buyer and vice-versa. When a buyer tells a seller, the business is not worth as much as (s) he thought, itâ€™s often viewed as a personal attack and the response can create a barrier to (what still could be) a successful transaction.
Primarily, itâ€™s a numbers problem. Today, the business for sale market is flooded with sellers wanting to fund their next stage of life (be it retirement or something else). Retirement is obviously the biggest factor as 70% of all businesses are owned by people over 551.This â€śage-waveâ€ť is further evidenced by the fact that about 8,000 Baby Boomers are turning 65 years old every day until the year 2029, an astounding number. Like stats? Here are a few more:
27.3 million businesses in the United States.
26.7 million of those employ less than 20 people.
19.1 million owners at or near retirement age and only...
15,233 SBA Loans were made in 20172.
Selling your business can be a lot harder than you think. Where are the Buyers and the required capital to buy these businesses going to come from? Even if you do find a buyer, getting the price you want is going to be challenging.
If you would like to discuss the process and what Empire can do for you, please call.
Article Source: https://www.bharatbhasha.com
Article Url: https://www.bharatbhasha.com/finance-and-business.php/494978
Article Added on Tuesday, February 25, 2020
|Business And Finance >> Top 50 Articles on Business And Finance|
|Category - >|