When You’re Selling a Business
You’ve worked hard…you have earned it. Now the culmination of years of effort is ready to pay off. However, selling a business is often a stressful, complicated process. That process of selling a business for maximum profit has a proven formula like no other, it’s not just “another transaction” like selling a house.
The sale of a business is most effectively and efficiently managed with a professional business broker or intermediary who is experienced in all aspects of a business transaction. Proper documentation, marketing and execution will all need to flow with precision to achieve success and help you receive the highest possible selling price.
At Murphy Business Sales-Irvine, we will prepare a professional valuation to determine the Fair Market Value of your business to ensure you that it is priced appropriately when you are ready to take it to the market.
We design a custom marketing plan to promote your business, first with sorting through thousands of prospective buyers in our in-house confidential database, some of whom have inquired in your specific industry, and then we take your business to the global network of business for sale websites and network with local and national business brokerage organizations. And listing your business is only the first step in a business sale.
Why Should You Sell Your Business with Murphy?
Murphy Business Sales has been one of the largest and most successful business brokerage firms in North America for over 40 years with offices conveniently located throughout the United States and Canada, providing brokerage services on thousands of transactions for owners of closely held companies in need of confidential, experienced professional services.
As successful business owners and executives prior to joining Murphy, or team of seasoned, experienced professionals can answer all of your questions on how to sell your business, giving you the confidence that when we take your business to market, we will treat the sale of your business as if it were one of our own.
And when you are ready to sell, our experts can help you get maximum value in the sale. With Murphy’s 30+ years of business brokering experience on thousands of transactions along with our ongoing affiliations with national and international business brokerage associations and merger/acquisition networks, we are able to assist you at every stage of the sale process.
We are members of virtually all associations, group listing services and networks that exist in the business brokerage industry. Combined with our 200+ Murphy team members across North America, we are able to increase the odds of finding the right buyer and perfect fit for your business, an advantage that simply is not available to most local real estate agencies and single brokerage boutique shops.
How We Manage the Selling Process
Murphy Business brokers use time-tested strategies and resources to help their clients capture full value when selling a business. Below is a brief, step-by-step overview of our business brokerage process:
- Brokers Confidentiality Agreement: We appreciate the sensitive nature of business sales and the data that is handled during the business brokerage process. Before we take any active steps to sell your business, we will commit to you a Brokers Confidentiality Agreement to ensure confidentiality throughout the transaction process.
- Determine Market Value: More often than not, business owners will overvalue or undervalue their business without acquiring a valuation, which unfortunately can turn a serious buyer away quickly. Attaining a professional valuation is a crucial step in succeeding in the sales process.
To prepare your business for sale, we will perform Broker’s Opinion of Market Value, or recommend another type of valuations we offer, depending on need. A valuation specialist will collect historical and financial data about your business to calculate the fair market value of your business.
- Sign Engagement Agreement: Once we’ve completed your valuation, you can choose whether or not to proceed with selling your business more confidently. If you choose to proceed, we will enter into an official exclusive engagement agreement for the sale of your business and will keep the status of your business confidential throughout the process until a sale is finalized.
- Market & List Your Business: To attract qualified buyers and ensure fair market value, we will develop a customized marketing plan for your business. We will create a detailed informational package to showcase the value of your business, helping you stand out from other listings. After that, we will market your business via targeted campaigns and through national and/or global business brokerage networks, helping you reach the largest possible pool of potential buyers.
- Qualify Buyers & Negotiate Offers: A successful business transfer depends on a qualified buyer. Our business brokerage experts will assess buyers based on their financial resources, their level of interest, and whether or not they will be able to succeed with your business after the transfer. Once we’ve identified one or more qualified buyers, we will help you evaluate all offers and negotiate with each potential buyer, helping you attain the best offer for your business.
- Close the Transaction: After you’ve reached an agreement with a buyer, Murphy Business will work with you throughout the sale process to close the transaction. We can also assist the business buyer to help them acquire financing, either through traditional financing or a small business loan. This ensures a smooth close to your transaction, minimizes the need for seller financing, and can help ensure the financial stability of your business post-sale.
Our Confidentiality Policy
Confidentially is crucial in any business sales transaction for several reasons:
- Protecting sensitive information: A business sale involves the exchange of sensitive information, such as financial records, customer lists, and trade secrets. If this information falls into the wrong hands, it could harm the business’ reputation and competitive advantage.
- Maintaining business operations: A leak of information about a business sale could lead to employee unrest, loss of customers and other disruptions that could harm the business’ operations and value.
- Preventing market speculation: If information about a potential sale becomes public, it could lead to market speculation and affect the business’ stock price, making it difficult to negotiate a fair deal.
- Preserving negotiations: Confidentiality helps ensure that negotiations remain focused and productive, without the distraction of external parties and media attention.
For these reasons and more, the identities of the business and the business owners are protected until we receive signed Confidentiality Agreements and personal or corporate financial statements proving the buyer’s financial competence to meet the down payment required.
Once a sales agreement has been reached, we understand that the sale and purchase of your business must be held in the strictest confidence to give the involved principals of the transaction the opportunity to advise employees, customers and others of the transfer when they feel the time is most appropriate.