Earls Packaging and Distribution Business Sells In One Month
Earl was at the point where he had decided to sell his retail supply and distribution business. You could find yourself in the same position – ready to retire, move on to a new project, or you just think it’s time to let someone else take the reins, it’s important to think through the sales process carefully.
The truth is, you don’t need a broker to sell a business, but having a good broker on your side like the team at Bonza Business & Franchise Sales can not only make the process as stress free as possible but it could also help you to achieve the sale in a much shorter timeframe.
When Earl reached out to Bonza in February 2022 to sell his business he had also been speaking to and researching multiple different agents around his area and was trying to find the right fit. Bonza’s outstanding performance and reputation were what first attracted Earl, but it was our competitive fees and incredible value for money that made him list his business.
There are four important stages that are required to achieve a successful business sale and having Bonza in your corner can make that process very easy. Earl was able to sell his business in just under 1 month with our service, so the proof is in the pudding.
If you are wondering how Bonza can help you to achieve a success story like this, then keep reading.
What are the four stages you ask?
- Appraising the business to determine a sale price
- Preparing the business for sale
- Demonstrating the business opportunity to prospective buyers
- Progressing the sales process through to completion
Appraising the business to determine a sale price
What’s involved: Determining how much the business could likely sell for, more importantly, understanding what the market would pay and also what they would consider attractive about your business.
How Bonza can help
The first thing you need is advice, and this can be established through Bonza’s no-cost, obligation free appraisal process.
Whether the appraisal is provided by Bonza or a separate valuer, it is critical to determining what the business might be worth in the market – a realistic value – and whether that meets your expectations as the owner.
This element is more than just determining a price. The Bonza team will provide insight into market dynamics that will determine how appealing your business will be in the market, how much interest there will be, and where that interest will come from.
Preparing the business for sale
What’s involved: Ensuring all elements of the business are in order and ready for market. This includes the staff, financials, operations, the customer database, plant and equipment and the business’s systems and processes.
How Bonza can help
When an interested party asks questions about the business opportunity, you must be able to respond quickly.
These responses must also be transparent, comprehensive and provide enough information to give the potential purchaser confidence as they assess the risks and opportunities in the business.
Demonstrating the business opportunity to prospective buyers
What’s involved: This is closely related to preparing the business for sale, but it focuses on professionally describing the business, both in writing and in conversations with prospective buyers.
How Bonza can help
Consider a business sale to be like buying a new car. Buyers can examine the nice shining car on the lot, sit in it, and even take it for a test drive. Most buyers, however, want to know more about a new car’s specifications than what they can see. These answers are represented by supporting documentation and the salesperson promoting the car, not by the car itself.
The broker team at Bonza plays the same role. They will think about who might be interested in your business and what they would want to know about it.
Our marketing team will then put together a professional business profile document that puts the business in its best light, while transparently describing its performance market dynamics and opportunities. In doing so they will also ensure they are well positioned to speak knowledgeably about these business ‘specifications’ when buyers call.
Progressing the sales process through to completion
What’s involved: Identifying parties that might be interested in the business and having regular, efficient, and focused conversations with them over the period to sell the business.
How Bonza can help
This is the process of qualifying, developing, and enhancing a buyer’s interest through an offer, acceptance, due diligence, final legal contracts, and completion.
It can be a difficult task for a business owner who is also running their business, because it takes a lot of time and persistence to follow-up with interested parties on a regular basis.
It can also be tricky for owners because it requires asking some pretty tough questions of potential purchasers on occasions.
For instance, because Bonza work on behalf of the seller, we will often need to ask interested parties qualifying questions like:
- Why are you interested in this business?
- What is your background, and do you have experience in a particular industry?
- How are you going to pay for the business? Have you got funds available?
- Are you interested in the business at this price? If not, what are you prepared to pay and what are your reasons?
Those are some direct questions and asking them as a business owner can be intimidating. And, in some cases, a buyer may not feel comfortable answering questions directly from the owner.
This is where Bonza come in – our broker team are excellent communicators and deal managers– They can effectively represent both sides in order to expedite a deal that benefits both parties.
Negotiation can benefit from objectivity
People perceive risk differently depending on where they are in a transaction. That’s human nature, but it makes this type of negotiation especially difficult for a business owner trying to sell their own business.
In a sale process, the Bonza broker team represent both sides in the spirit of objectively analysing issues to come up with a solution acceptable to all parties and ensure the deal moves forward.
In the case of Earl’s retail supply and distribution business sale, the Bonza broker team were able to manage 33 initial enquires, 3 separate offers, buyer concerns, third-party legal involvement and complete the sale in record time with not only a happy seller but a purchaser who was over the moon with the service provided to them and the efficiency in doing so.
If you want to find out how Bonza can help you sell your business, then please call us today for an obligation free chat.
