In part one of this two-part blog series, we went over some of the initial elements that play a major role in closing a business sale of any kind. Closing your sale is one of the final and most important stages you'll go through, and knowing the basic steps to move through will be very helpful in the long run.

At Utah Business Consultants, we're here to help with any and all needs you may have while selling your business in Salt Lake City or surrounding areas of Utah. We assist with everything from exit planning and business valuations to sale closing and much more. Today's part two of our series will go over the final elements of closing your business sale, ensuring you know how to manage these important areas.

phases business sale closingApproval of Financing

While this is an area that primarily involves the actions of a business buyer and the lender they're using to finance the purchase, there will still be conditions that need to meet in order for your sale to move forward. Generally, you and your buyer's attorney can help ensure that all financing terms are approved by both parties before any closing documents are signed.

As you're going through the process of closing, be sure to also work with your buyer's lender about any specific holdbacks and conditions that need to be met in order for the sale to happen. These may include things like a certificate of occupancy or other compliance documents that needed prior to closing.

Drafting the Final Agreement

When closing a business sale, a lot of details will need to be ironed out in order for the Agreement of Sale to be accepted by both parties. In most cases, you'll use an attorney or legal expert to draft up your Agreement of Sale for the particular transaction that's taking place. This document could include things like any contingencies, purchase price details, and the responsibilities of both parties after closing.

Once you feel confident in the Agreement that's been drafted, you can move forward with signing it and officially closing your business sale.

Signing Closing Documents

The final step before closing a business sale is to sign all of the necessary documents related to the transaction. This could include things like the Agreement of Sale, some closing forms, and any other documents that were required by your buyer or their lender.

At Utah Business Consultants, our experienced team can help you review all of these documents and ensure they're in order before signing. By doing this, you'll be able to move forward with confidence knowing that all of the paperwork is handled.

For more on this or any of our other business consultation services, please contact us today!

There are a few important parts of a typical business sale, and one of the most important as you're nearing a final agreement is known as closing. Closing itself, however, also contains a number of typical phases that are generally covered to ensure that all parties are protected and have their interests met.

At Utah Business Consultants, we're here to assist Salt Lake City and other Utah clients with every stage of a business sale process, from exit planning and business valuation to important elements of closing and more. In this two-part blog series, we'll discuss the typical stages of closing a business sale, plus what to think about during each of them and how our team will assist you.

phases business sale closingHow is "Closing" Defined in Business Sales?

Before we get into the different phases of closing, let's define it. Closing is the process by which a business sale is officially finalized and executed. It involves both parties signing papers to make the transaction official in accordance with state laws and regulations, as well as any other documents needed for a complete transfer of ownership.

Some people define the "beginning" of the closing period somewhat differently, but generally we like to think of it as starting when both parties agree on the final terms and conditions of the contract. At this point, there might still need to be some negotiating, but the basic structure is in place and ready for signatures.

Our next several sections, and on into part two of our series, will look into the important stages to be aware of here.

Letter of Intent

Sometimes simply abbreviated LOI because of how common a term it is within the business sales world, a letter of intent is one of the first documents you'll encounter in closing. This document outlines the terms and conditions that have been agreed upon by both parties and acts as a sort of "promise" between them.

It's important to remember that while some LOIs are legally binding, many are not – and the extent to which it is legally binding should be made clear in the document itself.

Due Diligence

Another major element of closing is due diligence. This process involves both parties doing research into the other to make sure that all elements are in order and that no surprises or discrepancies exist with regards to the other's performance, financials, management style and more.

For buyers, this might include reviews of sales reports, taxes, financial statements and other related documents; for sellers, it can involve visits to the premises and background checks of potential buyers. No matter which side you're on, due diligence is an important part of closing and should be taken seriously.

In part two of this series, we'll continue our discussion of closing a business sale and look into the other aspects to be aware of. And for more on any of our business sale or business valuation services, speak to our team at Utah Business Consultants today.

In part one of this two-part blog series, we looked at some of the ways to keep things positive during business sales, plus why positivity is so important in many sale situations. Not only will this allow you to keep the focus on the most positive aspects of your business as you market it to buyers, but it will also maintain a good relationship between parties and avoid any issues.

At Utah Business Consultants, we're happy to assist numerous Utah clients with selling their business, from exit planning and business valuation to help dealing with prospective buyers and more. Today's part two of our series will look at some other ways to keep things positively-focused during a business sale.

positivity business sales transparencyFocus on Robust Operations Setups

Showing clients that you have a solid formula as a business is vital for attracting buyers. Showing that things are well-run and have a system in place for successful operations will be especially attractive to any potential buyer – whether it’s an individual or a larger company.

Make sure all your operational processes are up-to-date so that you can present them as part of the sale package. As you're doing so, be sure to highlight positive features like how easily these processes can be adapted to new technology or systems.

Provide Information on Your Employees

A business’s staff can play a crucial role in successful sales, as potential buyers will want to know if the team are experienced and reliable. Showing that you have loyal, well-trained employees who understand your company's goals is an essential way to demonstrate the strength of your business.

You can also discuss any additional incentives that you offer employees such as bonuses, training courses, or other benefits. This will show potential buyers that you are a great employer and have very capable staff who can help in their new ventures.

Transparency is Vital

While focusing on the positives is very important when you're selling your business, it's important not to sound too much like a "sales pitch" the entire time - and one big way to avoid this is by being honest and transparent with prospective buyers.

Provide as much information as possible, from financial records to customer history, so that potential buyers can form an accurate picture of your business. This will be beneficial both for you and the buyer, as it will make the sales process smoother and more straightforward.

Setting a Realistic Price

Finally, one great way of avoiding potential sales issues is setting a realistic price. This may sound like an obvious point, but it's one that can be easily overlooked. Make sure that you have accurate pricing information and research when deciding on your asking price, as this will help to avoid any unnecessary arguments or delays.

At Utah Business Consultants, we're here to assist with every stage of a Utah business sale, from valuation to exit planning and beyond. If you need help with any aspect of the process, reach out today – we'll be happy to assist you.

Keeping things positive and upbeat is often helpful in many areas of our lives, and a good example here is among those engaged in selling their business. The general approach here should be all about focusing on the positive, helpful aspects of your business and how they'll benefit prospective buyers, and there are several ways to ensure you're ready to approach things in this manner.

At Utah Business Consultants, we're here to assist any client looking to sell their business in numerous ways, from broad themes like these down to the vital details of your business valuation and sale. What are some simple ways to keep a focus on positive, helpful elements of your business during a sale situation, which will in turn help improve your prospects at a great sale? This two-part blog series will go over several basic tips.

positivity business sales preparationWhy is Positivity Important in Business Sales?

Firstly, let's discuss why keeping a focus on positivity is important in this situation. Of course, you need to be realistic about the strengths and weaknesses of your business, but emphasizing the positives can help potential buyers see its worth. Your upbeat attitude will show that you have faith in your product, which may also encourage prospective buyers to trust that they're making a wise purchase.

Also, it's important to remember that potential buyers are looking for a good deal too. So, making sure you’re able to point out the positive aspects of your business and its potential will help them feel more confident about their investment and thus make them more likely to choose your product over others.

Have Everything Prepared Well in Advance

From a broad standpoint, the simplest way to ensure you're ready to highlight the positive aspects of your business is to ensure you're always prepared and organized. Have all the necessary documents ready and on hand, from financial reports to legal papers and everything in between - this will help reduce any anxiety that might come with not having paperwork readily available if a buyer requests it.

Keep your books up-to-date so you can have a clear financial picture of your business and its operations, and if you're not sure how to organize everything in the most efficient way, consulting a professional can save you time and help provide proper guidance.

Maintain Normal Operations During Sale Negotiations

One important concept when it comes to selling your business is to try and maintain its normal operations as much as possible during the sales process. This can show prospective buyers that you have faith in your product and that it still has a place on the market even though it's being sold. Potential buyers will be more likely to jump at the opportunity if they see that there are currently active customers or that sales are strong even during the sale process.

In part two of our series, we'll dig into some other helpful tips on how to utilize positivity during business sales and what it means for potential buyers. For more advice on the process of selling your business, reach out to the experts at Utah Business Consultants today. We look forward to helping you secure the best possible outcome for your sale!

In part one of this two-part blog series, we went over some of the initial themes to consider as you go about justifying your business asking price during a potential sale situation. Once you've set a price and listed your company on the market, many of the initial inquiries you'll get from prospective buyers will involve you justifying the price you've set in various ways.

At Utah Business Consultants, we're here to help with a wide variety of business sale services, from business listings to exit planning solutions, business valuations and much more. Today's part two of our series will discuss some of the other key ways you can go about justifying and proving your asking price when selling a business.

justifying business asking priceStatement of Seller's Discretionary Earnings

Abbreviated SDE, this is the most common method for gauging the value of a business and one that many prospective buyers will use to evaluate an offer. It's derived by taking out all of your operating expenses from your total revenue, leaving you with just your net income. This SDE then works as a baseline for calculating what kind of value the buyer can expect from the business.

Estimate Earnings Multiple

Another major factor in determining your business's value is the estimate earnings multiple (EEM). This is a measure of how much buyers are willing to pay for your company based on the future potential cash flow. By multiplying this EEM with your SDE, you can get an accurate measurement of what kind of value the buyer should expect from their purchase.

For most small or medium-sized businesses, earnings multiples for sales will be between 1-4. This can be impacted by a number of factors, from the company's recent performance to how simple the transition is expected to be. Another key element will be recurring revenue, which is often seen as a sign of stability and an important factor in negotiating the final sale price.

Confirming Value Via Outside Parties

Finally, one of the strongest and most persuasive methods for justifying your sales price is to have it confirmed by an outside party. This can come in the form of a third-party valuation, which will provide a more accurate appraisal and credibly demonstrate that your asking price is reasonable. Having a professional business valuator on hand can also be beneficial for buyers who are looking for financial assurance before making a commitment.

Ultimately, it's important to have a strong understanding of the current market and pricing trends in order to accurately justify your asking price. This can be challenging for many sellers, especially those who are new to the process or don't have access to up-to-date information. By following the steps outlined above and seeking out professional assistance with the sale of your business, you can help ensure that you get a fair price for your company.

At Utah Business Consultants, we're here to help guide you through the process of selling your business as easily and efficiently as possible. Contact us today to learn more about our services or to set up an appointment!

Several key factors will set the baseline for any business sale, and one of these is the asking price you initially lay out for your business when you list it on the market. Once this price has been named, one of the important tasks you'll be faced with moving forward is justifying that price to possible buyers -- buyers who are, naturally, looking to get the best deal they can.

At Utah Business Consultants, we're here to help. We assist clients with every aspect of selling their SLC business, including help with both setting and defending an initial asking price on the business as a whole. What are some of the basic financial and related tools that will help you both arrive at and justify your asking price when in negotiations to sell your business? This two-part blog series will go over several.

justifying business asking priceBasic Financial Statements

First and foremost, some of your most important resources for both arriving at and defending your asking price will be your business' basic financial statements. These include items such as:

These financial statements will give both you and potential buyers a clear idea of the value of your business, as well as what they might expect to see in terms of return on investment if they were to purchase it. With this information in hand, you can start to get a feel for what an appropriate asking price might be.

Market Research

In addition to looking at your business' financials, it's also important to do some basic market research to see how your business stacks up against others in terms of size, scope, and profitability. This will give you a better idea of where your business falls in terms of value, and can help you to determine a realistic asking price.

Once you've done your market research and financial analysis, you'll be in a much better position to set an appropriate asking price for your business.

Tangible Asset Value

Next up, you need to also take into account the value of any tangible assets associated with your business. This might include things like equipment, inventory, real estate, and more. These items need to be valued separately from the business as a whole in order to get an accurate sense of what they're worth -- after all, not every buyer will be interested in taking on these assets, so they shouldn't be included in the asking price for the business itself.

In part two of our series, we'll go over some additional themes like discretionary earnings, earnings multiples and more. For more on how to justify your asking price during a business sale, or to learn about any of our SLC business broker services, speak to our team at Utah Business Consultants today.

In part one of this two-part blog series, we looked at some of the primary reasons why it pays to work with a quality business broker if you're looking to sell your business. There are several major advantages to going this route rather than trying to manage all the ins and outs of a business sale on your own, and knowing about them is helpful as you enter this arena.

At Utah Business Consultants, we're happy to offer the very best business broker services available, assisting clients with the full scope of their business sale needs from start to finish. Let's look at some other reasons why business brokers are so valuable if you're going down this road.

value business brokers experienceSignificant Experience With Your Type of Business Sale

It's important to realize that there are actually several different types of business sale transactions. Each of these has its own unique qualities, and each will require a slightly different approach from the broker who's handling the process.

Simply put, it's very unlikely that most average business owners have a full knowledge of all of them. For example, let's take a look at the sale of assets vs. shares in a company. The two processes aren't necessarily interchangeable and haven't got the same level of complexity involved.

Our business brokerage professionals have plenty of experience to draw upon when working on deals like this, and they know what it takes to get deals done. This is a major part of our value.

Membership in Business Listing Sites

As you're putting your business out on the market, a broker will be able to help you figure out which are the most valuable business listing sites for your business's specific situation. In some cases, there can just be a couple of different sites that make sense; in other situations, there may be several good options available.

Either way, our brokers can tap into the resources needed to get your business listed with the most relevant sites possible.

Low Fees and Great ROI

When you compare the relatively small costs you'll pay to a business broker with the extensive hassle and time consumption that would go into trying to sell your business without any help, it's clear that the investment will be well worth it. With our business brokerage services, you'll find both affordable and flexible options for getting your deal done. With so much riding on the sale of your business, this is definitely something to keep in mind as you go forward with such an important financial event.

If you're looking to sell your business and make sure you get the best price possible, look no further than Utah Business Consultants. Let our experts help today! Call us at your convenience to set up a consultation or learn more.

There are many areas in the business world where working with outside advisors is often highly beneficial, and one of the top examples here is when selling your business. Working with a quality business broker will offer you numerous benefits during this process, and there are several good reasons why many business owners go this route for all their business sale needs.

At Utah Business Consultants, we're proud to provide the best business broker services available in Utah, helping with everything from business valuation to attracting sale clients and more. What are some of the chief benefits of utilizing a business broker when selling your business, especially compared to trying to handle all these details on your own? This two-part blog series will go over several important factors.

value business brokers financingIdentifying and Qualifying Buyers

One of the single most important and difficult aspects of selling a business is identifying and qualifying buyers. This process can be quite difficult, as there are often many potential buyers who express interest in purchasing a business but who may not actually be qualified to do so.

A good business broker will have an extensive network of connections in the business world and will be able to quickly identify and qualify buyers who may be interested in your business. This can save you a great deal of time and energy, and can ultimately help you to sell your business more quickly.

Ensuring Confidentiality

Confidentiality is of vital importance when selling a business, and this is something that a good business broker will be able to help with. When you try to sell your business on your own, it can be difficult to keep the sale confidential, as potential buyers may be able to easily find out about the sale through online listings or word of mouth.

A business broker will be able to work with you to keep the sale of your business confidential, ensuring that only qualified buyers are made aware of the sale and that your business operations are not disrupted during the process.

Helping Buyers Identify Financing

For some business buyers, one of the key obstacles to purchasing a business is financing. Many buyers do not have the necessary capital on hand to purchase a business outright, and securing financing can be a difficult and time-consuming process.

A good business broker will be able to help buyers identify financing options and will work with them to secure the necessary funds to purchase your business. This can make the entire process of selling your business much smoother and can help to ensure a successful sale.

These are just a few of the benefits that you can enjoy when working with a business broker when selling your business. At Utah Business Consultants, our team of experienced and knowledgeable business brokers is here to help you with every step of the process, from start to finish. Contact us today to learn more about our services or to get started with the sale of your business.

In part one of this two-part blog series, we went over some simple basics on what are known as fairness opinions in the business brokerage world. Referring to a report that speaks to the overall financial fairness of a proposed transaction, fairness opinions are common in business sale settings -- meaning they're important to know the ins and outs of.

At Utah Business Consultants, we're happy to serve as a top business broker in Salt Lake City and nearby parts of Utah, helping clients with everything from business valuations to the entire process of selling their business. When are fairness opinions used, and why should you consider using one during any business transaction you're taking part in? Here's a rundown.

Fairness OpinionsExamples of Settings Where Fairness Opinions Are Used

Here are some of the most common situations in which fairness opinions will be used:

As you can see, fairness opinions can be used in a variety of different business transactions. In each case, the goal is the same -- to ensure that all parties involved are comfortable with the price being paid or received.

Why Use a Fairness Opinion?

If you've never been involved in a business transaction before, you may be wondering why fairness opinions are used. After all, can't the parties just agree on a price and move forward with the deal?

There are a few reasons why fairness opinions are often used in business transactions. For one, you heavily decrease the risks associated with the deal. Remember, a fairness opinion is effectively an insurance policy -- if something goes wrong and it's later revealed that the price wasn't fair, you could potentially backs out of the deal or receive compensation for any losses incurred.

In addition, using a fairness opinion can help to pave the way for a smooth transaction. If all parties involved in the deal are comfortable with the price being paid or received, it's much less likely that there will be any problems or hangups during the process.

Finally, fairness opinions can add a layer of legitimacy to the deal. If you're selling your business, for example, having a fairness opinion can show buyers that you're serious and ready to move forward.

For more on fairness opinions and their use in business sales, or to learn about any of our business brokerage services in SLC or nearby areas, speak to the team at Utah Business Consultants today.

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