Is it time to sell your business now?

Is it time to sell your business now?
Despite the slumping economy, a good business will always be in demand. What do buyers look for for in a business? Take a look at the following traits we have compiled.

Increasing Revenue
Has your business been growing 5%+ for the last three years?
Complete Financial Documentation
Buyers are looking for documented financials going back at least 3 years.
Continuity of Ownership
Have you been the owner for the last 3-5 years?
Long Term/Favorable Lease
Does your current lease move forward 5-10 years? Does it have any options? Are your annual increases below 3%?
Pricing
The pricing of a business for sale is the single most important factor determining whether or not it sells. Regardless of how well positioned a business may be relative to the other factors we have mentioned, an overpriced business will stay on the market for a long period of time, while receiving minimal attention from buyers.
Terms of Sales
Other than pricing, the terms of the sale are the most critical component determining the close of a sale. For businesses that are incapable of producing complete and favorable documentation of financials sellers should expect to finance 50%-70% of the sale.
Condition of Premises
The condition of the premises is extremely important, especially if the business deals directly with the public. A neglected facility is a frequent reason why buyers walk away a transaction or make offers significantly lower than the asking price.
Existing Management and Personnel
Having good people in place is very important. Poor morale and inattentive workers are negative factors that jeopardize deals.