More and more entrepreneurs are flocking to Austin every year. Recently, Forbes included the city in its list of top 25 cities for small businesses, with Austin recording massive earnings in 2023. According to the Austin Chamber of Commerce, this Texas city has more new businesses pop up than nearly any other major United States metropolitan area. With its continuously growing population, great tax incentives, and a high quality of life, it’s no wonder Austin is an ideal place for both startups and long-established brands.
If you’re an Austin-based entrepreneur, it’s likely that you dream about making your legacy last for a long time. Even after retirement, you can increase the chance of business longevity by developing a succession plan. Some business owners give their venture as a gift to their children or partner, while others sell it to another entrepreneur or company that shares their vision. To sell your company, there are certain things to know about navigating a successful transaction, including how to best utilize the services of an Austin-based business broker.
If you’re putting your Austin business on the market, here’s a guide to navigating the business sale landscape:
Why Entrepreneurs Sell Their Business
Selling a business, especially a successful one, may seem counterintuitive to some people. However, entrepreneurs who sell their businesses actually have very solid reasons for selling their trade. For instance, business owners with no heirs or sole proprietors may opt to sell their organization while they’re still around. This helps ensure that their venture, staff, and suppliers are in good hands, and their business is more likely to stick around for the next 10 to 15 years.
Beyond that, some business owners wish to sell to move on to the next thing. Using funds from the sale, they can create a new startup or fund a bigger project. Meanwhile, some CEOs decide to sell simply because they’re ready to retire, need funds for medical expenses, or need capital to move and buy a new home.
There are also some who choose to let go of their venture to focus on spending more time with family. Others might sell their business but continue earning income from it by staying on in a temporary or long-term advisory capacity.
Whatever the reason, it’s important to be well-prepared before putting your business on the market; it can be a challenging and emotional process. Consulting a business broker is a crucial part of the preparation process since they can help you navigate the intricacies of a business sale.
Moreover, they can help you get a tidy profit so you can move on to the next phase in your career or personal life. To sell your Austin business, you can get advice from brokers at www.ibexbeyond.com to guide you from the initial listing to closing the deal.
Starting the Selling Process
Once you’re matched with a business broker, you’ll be asked to provide them with all the information relevant to your Austin business. This may include factors like your gross revenue, net profits, and your employees, among others.
You’ll be asked about your goals for the sale (your broker wants to check that a buyer can meet all your terms and conditions). These goals may include making a profit from the sale, having a stress-free transaction, and making sure employees stay on with the new owner.
At this point, you may also want to let your employees and suppliers know you’re selling the company. Tell them what to expect throughout the process whenever possible. Brief them on any changes that may take place once the enterprise has been turned over to the new owner.
If the purchasing party doesn’t wish to retain your employees, keep in mind that their employment might be terminated during the transfer. Be honest with your staff so they can find other places to work.
Think about giving your employees severance pay if the sale of your business results in them losing employment. To encourage them to stay while negotiations are going on, let them know they’ll receive their severance pay upon transfer of ownership.
Determine the Value and Putting Your Business on Sale
Before putting your Austin business on the market, you’ll need to know its current value. This enables you to price your venture correctly and get a profit out of it. It also prevents you from overpricing, which could discourage potential buyers. To do a business valuation, your broker may add up the value of your trade’s assets, base it on your location, and calculate how much your business earns every year.
Once that’s done, your broker now lists your company on relevant platforms and advertises its sale on social media or on other channels. They may also employ conventional marketing tactics, such as telemarketing, email campaigns, and cold calling to get the word out. Business brokers typically have their own internal buyer databases, helping them reach interested parties individuals might not have known about or otherwise considered.
Selling your business keeps your venture in capable hands, and it enables your brand to thrive for years to come. To sell your Austin business, consult an experienced professional broker for a hassle-free transaction.