VR Business Brokers in Dallas Offers Advice for Business Owners Considering Selling in the New Year
DALLAS, December 4, 2006 -- Successful business owners are experts at making deals, but many seek the expert guidance of a business advisor to help with their largest and most important deal: the sale of their business. VR Business Brokers in Dallas says now is the time to start preparing if business owners are considering selling in 2007.
"Selling a business is a once in a lifetime deal, so it''s essential to be prepared and understand what it takes to make it successful," said Scot Cockroft, owner of VR Business Brokers in Dallas. "The same patience and care that went into establishing and growing a business come into play during the sales process."
Cockroft says there are some important early steps to consider that can play a critical role in determining a company''s selling price. For instance, he suggests business owners act now to maximize the profits reported on their 2006 tax return.
"Sale prices generally depend on profits," Cockroft said. "While it may seem strange to reduce tax write-offs and pay more taxes in 2006, doing so will maximize profits and lead to a higher selling price for the company, which will more than offset the higher tax bill."
Be sure your records are clean, understandable and up-to-date. You want all of your hard work to pay off in the sale, so be sure you have current, detailed records that provide an accurate assessment of the company''s financial position and future projections.
Begin transitioning responsibilities to employees. Many entrepreneurs have a tendency of being micro-managers, which can create difficulties when it comes time to sell. Therefore, Cockroft recommends shifting responsibilities to key employees over a period of several months to ensure a smooth transition of ownership.
Cockroft also recommends encouraging employees who have accumulated a lot of vacation time to use that time prior to the end of the year. The dollar value of vacation time owed to employees can come right out of the sale price of the business.
Finally, Cockroft says the sale of a business can be a complex transaction and he recommends assembling a team of experts. A business broker who specializes in representing sellers in mergers and acquisitions of smaller businesses can be instrumental in helping establish a price, market the business and facilitate negotiations with a buyer. Perhaps most important, a business broker enables the business owner to focus on business operations when it''s needed most.
"Utilizing a business broker helps the owner sell their business from a position of strength," Cockroft said. "When it comes time to sell, we ensure that the same careful planning and dedication that went into building the business is devoted to maximizing what you get out of it."
Sales of businesses by VR Business Brokers'' Dallas office outpaced the rest of the nation in the second quarter of 2006. The Dallas office earned the top ranking by outperforming 96 other VR offices worldwide.
About VR Business Brokers
Founded in 1979, VR Business Brokers has sold more businesses in North America than anyone, providing the most extensive training program for its intermediaries and maintaining the largest national database of sold businesses to assist in business valuations. VR Business Brokers has been rated the number one business brokerage in the world for 16 of the last 20 years. More information about VR Business Brokers in Dallas is available at (972) 792-0100 or www.vrbigd.com.