3-Step Process To Sell Your Business

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We have acquired 10 web-hosting, website design, digital marketing or any technology business. I have spoken with hundreds of business owners who dream of selling their business and retiring!

Managing business is tough. If you are the owner or CEO, you are always operating under conflicting demands :

1) Your customers want to pay you less. Your staff members want higher pay.

2) Your customers want your team to work hard. Your staff members want less hours, more holidays.

3) Govt. wants higher taxes. Shareholders want higher profit. Customers want better discounts. Staff members want stronger bonus. Vendors want better payment terms.

4) Customers don't want long-term commitment or contracts. Staff members want company to give long-term commitment, contract and retirement benefits!

5) Technology is changing. Customer needs are changing. You have to make sense of the fast moving changes and make decisions.

Most people start business as they get attracted by sense of power, vision of earning lots of money and complete freedom as the business owner. Reality is that most business owners work longer hours, take few holidays and give false impression of success.

No wonder many business owners keep thinking about selling and retiring.

This article will explain valuation model for web-hosting or website design business and standard methodology for business sale.

Click on the link to watch Youtube Video : 

https://www.youtube.com/watch?v=vhN0CO-Q8pA&t=7s

Valuation Model: Most small business owners will quickly experience that ultimately value of their business is tied to net profit. Bigger companies or publicly traded company have higher valuation even if they are making losses. In case of smaller companies, primary valuation criterion is the net profit.

Business Sale Process: If you are a business owner, you need to get Non-Disclosure Agreement (NDA) signed by the buyer. This is the first step. Once NDA is signed, you can share your financials and company information to enable buyer to arrive at valuation. Seller and buyer can discuss their valuation approach and arrive at mutually acceptable valuation. At this stage, buyer can sign non-binding Letter Of Intent (LoI). After LoI, buyer and buyer's accountant will conduct thorough due diligence. Once due diligence is completed, buyer will sign Asset Purchase Agreement or Share Purchase Agreement.

Payment and Post-Acquisition Support: Once you complete Asset or Stock Purchase Agreement, last step is to receive payment and support new buyer in managing the business.

Business Owner's Testimonials :    Following letter from business owner who sold their business to CGS indicates effectiveness of CGS business acquisition process.

  • Business Owner - Cycom Technologies

http://www.cyberwebglobal.com/testimonials/cycom.html

  • Business Owner - Spur Technologies

http://www.cyberwebglobal.com/testimonials/spur.html

  • Business Owner - S D Motion Graphics

http://www.cyberwebglobal.com/testimonials/sdmotion.html 

If you are a business owner, start creating effective strategy to exit your business at some point. You are welcome to contact us if you need free consultation on business sale process.

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