How to Sell Your Business

Listen to our blog on "How to Sell Your Business" here:

SUMMARY

Gregory Kovsky is an expert on selling companies. He has been the President of International Business Associates for the last 24 years. Gregory has successfully negotiated the purchase & sale of over 300 privately held companies in Washington, Oregon, Alaska, California, North Carolina, and Massachusetts.

Transactions have been completed involving manufacturing & distribution companies; industrial, marine, and automotive businesses; technology & software businesses; retail, E-commerce, & catalog companies; service providers; wineries; and hotels, restaurants & drinking establishments. Gregory explains what you should be doing when it comes to selling your business.

Learn more about Gregory Kovsky here!

LETS GET DOWN TO BUSINESS

How did you become a business broker?

After the sale of his father's Veterinarian Hospital, Gregory took his passion for business and sales into selling businesses and became the top salesman of the company under the mentorship of the owner. In 1997, he took over management of the Bellevue office and later purchased the company in 2000.

I am a small business owner. I am not ready to sell my business now. Why should I pay attention to the topic of how to sell your business?

The business that you've built is one of the largest assets in your life. The transition from a business asset to a liquid asset can help you retire and live the life that you want.
If you're not planning an exit strategy, for anything, then you are not thinking ahead. You don't want all of your hard work to not get transitioned to another person because you didn't take the proper steps to sell it.

Why do people sell their business(es)?

Retirement sales
- Most common client
People who love creation, but not necessarily the management aspect
Distress sales
- Partnership break-up, divorce, death

"Entrepreneurs are the best demographic to work with. They are people who've lived the American Dream, hard-working and a delight to work with"

THE STREET SMARTS OF SMALL BUSINESS
_{Learn how to buy a business, grow your profits & make it run without you.}

I am sure one of the questions on our listeners’ minds is – how much is my business worth? What sorts of things do you look at to determine how much a company is worth?

When determining the success of your business, consider these:

Capital you invested to create it
Annuity you received running it over the years
Equity value
- However, do not judge your success or failures off of equity

The housing market is really hot – especially in the Seattle area. Is selling a business like selling a house? Am I going to put my business on the market, and get 5 offers two weeks later?

3-9 months from when they first go to market is the timeframe for selling a business.
2 distinct business models in business brokerage:
- Commission based, such as International Business Associates (IBA)
  or
- Firms that charge administrative fees and retainers upfront.
When selling your business you need to make sure you find a brokerage whom know the market, your industry and how to market it appropriately to get it sold.

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