The sale of small to mid-sized businesses in the Inland Empire (Riverside and San Bernardino Counties) remains robust. Over 250 businesses were sold in the first quarter of 2024 alone. The ongoing wave of retiring baby boomers looking to cash out after years of hard work and enjoy their golden years keeps the market for businesses for sale brisk. Consider the following insights from the California Association of Business Brokers:
- Baby Boomers own an estimated 12 million privately owned businesses.
- Retiring Boomers will sell or bequeath $10 trillion worth of businesses over the next two decades.
“Whether you’ve got a way to go or are ready to ride off into the sunset, it makes all the sense in the world to put your exit strategy in place right now,” says 1-800-Biz-Broker Principal, Pablo Fonseca. “I’ve seen it all too often where a client has put a lifetime of effort into creating their single greatest asset but fails to plan an exit, and along comes one of the BIG Ds to spoil the grand finale: Death, Disease, Divorce, or Dispute between partners or family members. It breaks my heart because it typically means a fire sale, and that is what we can and should avoid at all costs.”
Planning to sell your business takes foresight and strategy. Engaging a business broker can significantly enhance your chances of a successful sale by providing professional guidance and market insights. The importance of having an exit strategy cannot be overstated. Without a well-thought-out plan, unforeseen negative events, often referred to as the dreaded 4 Ds, can force you into a position where you must sell your business at a discount or, worse, close it altogether.
5 Things to Consider When Choosing a Business Broker
- Experience and Track Record: Look for a business broker with a proven track record in selling businesses similar to yours. Experience matters, and a broker who understands your industry and market can provide invaluable insights and guidance throughout the sale process. Check their history of successful sales and client testimonials to gauge their effectiveness.
- Credentials and Affiliations: Ensure that the broker is properly credentialed and affiliated with reputable industry organizations. Membership in organizations such as the International Business Brokers Association (IBBA) or the California Association of Business Brokers (CABB) can indicate a commitment to ethical standards and ongoing professional development.
- Comprehensive Services: Choose a broker who offers a full range of services, including business valuation, marketing, negotiation, and closing support. A comprehensive approach ensures that all aspects of the sale are handled professionally, increasing the likelihood of a successful transaction.
- Confidentiality Practices: Confidentiality is crucial in business sales to protect your business’s competitive position and relationships with employees, customers, and suppliers. Discuss the broker’s confidentiality practices and ensure they have robust measures in place to safeguard your sensitive information.
- Communication and Compatibility: Effective communication is key to a successful partnership. Choose a broker who listens to your needs, keeps you informed throughout the process, and is responsive to your questions and concerns. Compatibility and trust between you and your broker can make the sale process smoother and more efficient.
To help its clients capitalize on the accelerating marketplace for the sale and purchase of small and mid-sized businesses, 1-800-Biz-Broker is offering a complimentary, confidential, and no-obligation business valuation. This service is invaluable for those hard-working business owners looking to retire, acquire, or inspire their heirs to take over their businesses in the next 3-5 years.
In conclusion, if you are considering selling your business, now is the time to start planning. With a well-structured exit strategy and the assistance of a seasoned business broker, you can maximize the value of your business and ensure a smooth transition. Don’t wait until one of the dreaded 4 Ds forces your hand. Instead, take proactive steps today to secure your business’s future and your financial well-being.
