Is It Possible To Sell A Struggling Business?

There are many reasons that a business owner may choose to list their business for sale. They may wish to pursue retirement or desire to move to be closer to family. But what happens when the business is struggling? Is it still possible to sell? Unfortunately, many business owners believe the only solution here is to shut the doors for good. This is not always the case, and there are many things you can do to help potential buyers see the value of your business.

It Starts With A Valuation

Your first step is to identify where your business may be falling short. Determine the root causes of your problems, and then look for ways to address them before the sale. This can involve anything from making changes to your product line or services to updating your marketing strategy or revamping your operations in their entirety.

Transparency Is Key

While you need to make your business as attractive as possible by reducing debt and improving profitability, you also have a moral, legal, and ethical obligation to be transparent with potential buyers. Don’t try and hide issues that you may not be proud of. Trust that buyers appreciate honesty and will be more likely to put an offer on the table if they know the challenges they may face.

Know Your Buyers

In addition to being open and honest, you should also speak with your business broker about the types of buyers that might be right for your business. Remember, just as no two businesses are alike, no two buyers will have the same interest or experience. Your business broker can help you identify the types of parties who may be most interested so that you can create a marketing plan that captures the attention of the right buyer.

Pricing Is Priceless

Determining market valuation is crucial in both attracting the right party and expediting the sales process. When you work with First Choice Business Brokers, your team of experts can help determine market valuation using proven methods that take into account profit, losses, discretionary income, and more. The goal here is not to price your business too low or too high but to strike a balance that works for everyone involved in the transaction.

Selling a business can be a daunting task, especially when there are struggles that you’ve yet to overcome. However, the right buyer is out there, but you will have to put in the work, choose the right broker, and maintain an open and honest line of communication throughout the process.

Ready to sell? Contact First Choice Business Brokers today to find out more about our professional brokerage services.