Author Topic: Have you sold a business? Share your experience!  (Read 310 times)

Nad

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Have you sold a business? Share your experience!
« on: March 14, 2017, 07:24:14 PM »
Hey guys,

I've been contemplating selling my business for some time now. I created a watch brand a few years ago which I'm selling online.

Selling my business would bring me to FI.

I'd love to hear your stories about how you sold your business. How did you go about it? How did you know it was time to move on? What did you do after?

CargoBiker

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Re: Have you sold a business? Share your experience!
« Reply #1 on: March 14, 2017, 09:56:35 PM »
If you're primarily selling online, I can help you some.  I'm going through the process now of getting my business sold.

I spoke with 3 different brokers, my favorite was Quietlight. They were professional, upfront, and had the lowest commission quoted to me at 10%. 

A broker functions a lot like a real estate agent.  They'll vet the buyers, set up a 3-way call with the serious ones, help go through the process, help draw up agreements, and of course expose your business/site to their network of buyers.

Beware of the broker that will try and hook you into an exclusive arrangement by giving you unrealistic multiples that he could sell your business for.  They get you in the exclusive, and then after a month of no one interested, they drop the price back down, but now you're stuck with them for the next 6 months.



Reasons for selling:  I have another business I want to get into, no longer interested in the products I sell, and some gut feelings about the future of the market I'm in.  I want to get out while things are going well, like you would when selling a house.

Nad

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Re: Have you sold a business? Share your experience!
« Reply #2 on: March 16, 2017, 03:46:43 PM »
Nice, thanks for sharing. I'll check Quietlight out. Please do keep us updated about the progress of your sale!

soccerluvof4

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Re: Have you sold a business? Share your experience!
« Reply #3 on: March 21, 2017, 06:47:14 AM »
I sold 2 businesses. One was a Franchise I got in early, had 9 stores around the midwest and the company sold to a fortune 500 who said they wanted to grow the franchise business. I didn't buy into it. At the time I was President of the franchise committee so used that as leverage, call the company and they said " I am leaving for Israel in 20 minutes lets get this done. That one I doubled my money which was good!
 
The second one I had for 25+ years, made a great income and was offered quite a bit for it around the 20 year mark BUT i was like I can make that in .......years so why bother and it was running itself. Kick myself in the ass 5 years later I really was done, wanted to get out as the industry was changing. Couldn't really sell for to much so basically sold the accounts to my good employees and took my cash flow.

I have been looking to buy a business I can do from home so I dont have to deal with employees and make some side hustle cash but to no prevail so far.

Good Luck! wish you the best!
" In life you don't get what you deserve you get what you negotiate"

Fishindude

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Re: Have you sold a business? Share your experience!
« Reply #4 on: March 21, 2017, 07:01:08 AM »
Yep, just sold my business of 30+ years.
This was a lengthy process; hand picked a few young employees that were interested, sold them some stock to give them skin in the game, set up good accounting systems to value the business, worked with them for several years then sold out.  Profits from the company will pay me off over several years and there are covenants in place to prevent them from skimming profits until I'm paid off.  I remain part time, low paid employee and on board of directors until paid off.  So far has been a good deal for all.   They are getting into ownership of a good business for a pretty low entry fee, and I am getting max value out of sale of the company.