Florida is a thriving environment for small businesses. Hence, many entrepreneurs, brokers, and investors are constantly searching for businesses to buy. On the other hand, several small business owners may want to put their companies for sale, but do not know how to do it.
In this article, you will find out the necessary steps to sell a small business in Florida.
How Long Does It Take to Find a Buyer for a Small Business in Florida?
Regardless of the reason behind the decision to sell a small business, there is no exact parameter for how much time it takes for a company to sell.
While some businesses owners may find a prospective buyer within weeks of making the decision, others may have to wait months or longer to find someone willing to buy their businesses.
In any case, it is crucial to work with an expert business attorney in Florida to guarantee a successful outcome for the transaction.
How Do I Sell My Small Business in Florida? – Step-by-Step
Do the Math Properly
If you are sure about selling a small business, the first step is proceeding with a detailed business valuation. You will need to make an in-depth assessment of your company’s numbers and register everything in detail (e.g., the company’s revenue throughout the years).
At this phase it is fundamental to go beyond simple formulas, as you cannot simply base the assessment of a business’s value on cold numbers. Remember to consider factors such as the company’s geographical location, its potential strategic value, etc.
Along with the guidance of an expert business attorney, you may need to call up your accountant and tax consultant to help during this process.
Decide Whether or Not to Hire a Business Broker
After figuring out your business’s numbers, it is time to proceed with the sale proceedings. Depending on your experience in selling a business, you may want to bring in a broker to help you.
In layman’s terms, business brokers are the middlemen between people selling their businesses and entrepreneurs/investors willing to buy a company. In this sense, these professionals can help you by:
- Assisting with the business valuation process
- “Packaging up” a company to make it more attractive to buyers
- Attracting selected buyers only
- “Filtering” buyers when it is time to meet them face-to-face
- Converting the interest of the “filtered” buyers into an actual business sale
However, it is fundamental to consider other factors when deciding to hire a business broker. Usually, they earn 6% to 10% of the total business selling price as part of their commission.
Also, as business brokers get paid when the interested parties complete a sale, many tend to underprice companies to sell them faster. If you want to find a reliable business broker in Florida, seek guidance from Jurado and Associates, P.A.
Setting the Right Price
Then, it is time to sit down with your legal advisor to determine the best asking price for your company. It is crucial to be careful when setting the price for selling a business in Florida. Setting the price too high will slow down the selling process, as you can miss out on attracting potential buyers. On the other hand, setting the price too low is not ideal either, as you may end up losing money. Ideally, find an asking price that represents what your business is truly worth. During the negotiation phase, make sure to employ the right strategies to get the most out of the process.
When it is time to exit the business, make sure to have a solid strategy in place. It is crucial to work with your lawyer to have all the paperwork prepared on time. Many business owners may be surprised at how long it can take to compile documents and gather signatures, so it is fundamental to start as soon as you find a serious buyer for the company.
Additionally, it is crucial to prepare the company for the transaction process. Take time to talk to your management team and employees even before preparing the paperwork. Sometimes, the new owner may choose to keep the same personnel, or they may want to bring a new staff.
How Do I Sell My Small Business in Florida? – Work with Jurado and Farshchian, P.L.
Undoubtedly, selling a small business is a complex and demanding task, which means it is crucial to have a strategic approach. Call Attorney Romy B. Jurado today at (305) 921-0976 or send an email at Romy@juradolawfirm.com to schedule a consultation.