Any Suggestions on selling a business

[anthony smith]

I have a 25+ year business consisting of full sign shop screen printing operation dtg (kornit and brother machines) emb 12 heads (2 bauridans) and have been a asi supplier and seller for 15+ years
we have around 750.00 just in equipment and do 1.5 + million in sales.
We have pancreatic cancer and would like to get this took care of so wife is not dealing with after my passing, We are planning for the worst case scenario and hoping treatments are successful and can hang in
for a few more years.
Just wondering if anyone has sold or bought a existing business could offer a broker or firm they had dealt with
I am not sure how to value or where to market, a newbie or inexperience person can not handle what we do.
My biggest issue is i am the business was expect to do this in a few years but think i may need to get started

 

[James Burke]

For starters, make sure you have documented and functional procedures, policies and systems.

Since time is of the essence, definitely seek out a competent and experienced business broker.

JB

 

[Inks]

Sorry to hear about your health challenges and hope the treatments are successful.
Is there friendly competitor that may understand and have interest in your business?

 

[Johnny Best]

I sold my business through a broker who took 18%. I owned the building which was a plus because the person who bought it sold off the equipment and rented out the building. Was happy with the whole process. The broker can reach more buyers than you can.

 

[Notarealsignguy]

Look at bizbuysell and you can probably locate a broker in your area. They will help with the valuation and do the leg work like Johnny Best said. They should also be able to advise you what financing options are available for the buyer, i.e. SBA as most buyers will finance a portion. Usually the owner holds a short term note with a substantial down payment but this may not be a good option for you because the buyer could default and your wife would be stuck dealing with that. Good luck with everything

 

[anthony smith]

Thanks everyone this helps me get started just wasn't sure how to figure a value.
Locally we don't have any competition i think could make this work money wise or expertise.
We started in 1994 and have grown ever year we been in business, seen so many come and go it is not even funny.
I create for sons to carry on but not sure that is something they can or want to do at this point in their lives.
Just wanting to make good decisions for my wife to ensure she is ok if we are not here.

 

[Notarealsignguy]

2-3x net averaged over 3 years plus assets is a real rough valuation

 

[Reveal1]

I'm sorry to hear about your struggle with pancreatic cancer; a good friend is fighting that. I recently sold my business (smaller than yours), so if you you want to PM me we can set up a time to talk if you think it might be helpful. .

 

[FireSprint.com]

Sounds like you have built quite a business over the years. A great legacy that someone will be able to take over and continue on.

Your business is a great size for an executive used to making $100-$200k in corporate America looking for a change of pace. I have seen that scenario many times, and it works out well.

I wish you all the best, and of course if I can help in any way, let me know!

 

[Souldar]

You may also want to contact sign shops that are in your state to see if they are interested in expanding into your area and be tempted to buy a fully functioning shop and make it a division of their company. I have seen success with this and it eliminates broker fees. There may even be a forum on Facebook for shops there and you could post that you are selling there.