Navigating Complexities of Selling a Business in Columbus Ohio

March 2023

Selling a business in Columbus, Ohio, can be complex, especially for Main Street and Medium-sized businesses. According to recent statistics, Main Street businesses account for most small business sales in Ohio. Medium-sized enterprises are becoming increasingly popular among buyers. With such high demand for these types of companies, having the right team on your side is important to ensure a successful sale. That's where a full-service business broker's office comes in.

Main Street businesses are typically small, locally-owned businesses with a lower revenue and employee count. In contrast, Medium-sized businesses have higher revenues and employee counts and are often more established in their industries. While selling a Main Street business may seem more straightforward due to its smaller size, the reality is that it can often take more work to find the right buyer and navigate the negotiation and due diligence process.

Selling a Medium-sized business presents its own unique set of challenges as well. These businesses often have more complex financials and operations, making valuations and due diligence more complicated. Additionally, finding the right buyer for a Medium-sized business can take longer due to the higher asking price and specific buyer criteria.

Maximizing the value of your business for sale is crucial to ensure that you get the best possible return on your investment. However, it's important to balance improvements and manage costs. 

We offer expert solutions for owners worried about selling their business at a loss. Sometimes a pair of fresh eyes and novice suggestions is all it takes to turn a business around. There are options to explore before taking drastic steps. 

With the help of a Full-Service Business Brokers Office, navigating the complexities of selling a Main Street or Medium-sized business can be much easier. Our team has the expertise and resources to handle every aspect of the sale process, from valuation to closing, ensuring you achieve the best possible outcome.

Consider low-cost improvements to improve the ROI of your business:

• Streamline Operations: One way to improve the ROI of your business is to streamline your operations. This can involve simplifying your business processes, optimizing your supply chain, or automating tasks. Streamlining operations can improve efficiency, reduce costs, and increase profitability.

• Improve Marketing: Effective marketing can help you attract more customers and increase sales. Low-cost marketing improvements such as creating a social media presence, improving your website, or offering promotions can help you increase brand awareness and drive sales.

• Reduce Expenses: Another way to improve the ROI of your business is to reduce expenses. This can involve renegotiating contracts with suppliers, reducing inventory levels, or cutting unnecessary costs. Lowering expenses can increase profitability and make your business more attractive to potential buyers.

• Boost Employee Morale: A positive work environment can help increase productivity and improve employee retention. Low-cost improvements such as offering training opportunities, providing regular feedback, or creating a recognition program can help boost employee morale and enhance the value of your business.

• Upgrade Technology: Technology upgrades can help improve efficiency and productivity and make your business more attractive to potential buyers. Low-cost technology improvements such as upgrading software, investing in new equipment, or implementing a customer relationship management system can help improve the value of your business.

By focusing on low-cost improvements that can significantly improve the ROI of your business, you can position your business for a successful sale without breaking the bank. Working with a business broker can help you identify the best improvements for your business and develop a strategy for maximizing its value.

Explore Options to Avoid Selling at a Loss

Selling a business at a loss is not an ideal outcome. Still, sometimes it may be the best option in certain circumstances. However, several other options can be explored before considering selling at a loss. Here are a few options to consider:

• Diversifying: One option to avoid selling at a loss is to diversify your business. Diversification involves expanding your product or service offerings, entering new markets, or acquiring complementary companies. Diversifying your business can reduce reliance on a single product or service and increase revenue streams.

• Restructuring: Another option to avoid selling at a loss is to restructure your business. This can involve reducing expenses, changing your business model, or renegotiating supplier contracts. Restructuring can improve your profitability and make your business more attractive to potential buyers.

• Improving Operations: Improving the efficiency of your business operations can help increase profitability and enhance the value of your business. This can involve streamlining processes, reducing waste, or improving supply chain management. You can position your business for a more successful sale by improving your operations.

• Seeking Investment: If you're considering selling at a loss due to a lack of capital, seeking investment may be an alternative option. This can involve finding investors or securing a loan to inject capital into your business. Seeking investment can help improve your cash flow and position your business for a more successful sale in the future.

• Waiting for the Right Time: Sometimes, the right time to sell your business can be better than selling at a loss. By monitoring market trends, waiting for economic conditions to improve, or improving your business operations, you can position your business for a more successful sale in the future.

Exploring all options before considering selling your business at a loss is essential. Working with a business broker can help you identify the best opportunities for your business and develop a strategy to maximize its value.

Liquidation is a Last Resort; Here’s How it Works

Liquidation is the process of selling off the assets of a business to pay off debts and other obligations. When a company faces financial difficulties and cannot meet its financial commitments, liquidation may be a sensible solution. Here is how the liquidation process typically works:

• Preparation: The first step in the liquidation process is to prepare for the sale of assets. This can involve conducting a physical inventory of assets, preparing financial statements, and determining the value of assets.

• Sale of Assets: Once the assets have been identified and valued, they are typically sold through auctions, online marketplaces, or other sales channels. The proceeds from the sale are used to pay off debts and other obligations.

• Creditor Payments: After the sale of assets is complete, the proceeds are used to pay off creditors in order of priority. Secured creditors, such as banks or other lenders, are typically paid first, followed by unsecured creditors, such as suppliers and vendors.

• Distribution of Remaining Funds: After all debts and obligations have been paid, any remaining funds are distributed to the business owner or shareholders.

• Liquidation can be a sensible solution for a business facing financial difficulties and being unable to meet its financial obligations. It can help minimize the financial losses of the business owner and creditors and provide a fresh start for the business owner to move on to other ventures.

Exploring alternative solutions such as restructuring, refinancing, or seeking investment may be a better option if possible. However, liquidation should be considered a last resort, as it often results in a significant loss of value for the business owner. Working with a business advisor or financial professional can help you understand your options and make the best decision for your business.

Full Service Business Brokers Offer the Following Services: 

• Business Valuation: Brokers may help sellers to determine the value of their business to ensure a fair asking price.

• Marketing: Brokers may advertise and market the business for sale, creating listings and distributing them to potential buyers.

• Buyer Screening: Brokers may screen potential buyers to ensure they have the financial means to purchase the business and the necessary qualifications.

• Negotiation: Brokers may facilitate the negotiation between the buyer and seller, working to achieve a deal that benefits both parties.

• Due Diligence: Brokers may assist buyers with the due diligence process, helping to ensure they fully understand the business they are buying.

• Closing: Brokers may help both parties navigate the legal and financial aspects of closing the deal, ensuring a smooth transfer of ownership.

These are just some of the services that business brokers may provide. The exact services offered may vary depending on the needs of their clients.

Conclusion, 

Selling a business can be complex, but working with a full-service business broker's office can help maximize your business's value and ensure a successful sale. First Choice Business Brokers has a proven track record of success in Columbus, Ohio, and can provide the guidance and support you need to navigate the complexities of the sale process in  Main Street and Medium sized markets.

With over 30 years of experience in the business brokerage industry, First Choice Business Brokers has helped numerous business owners successfully sell their businesses. Our team of professionals offers a wide range of services, including business valuation, marketing, buyer qualification, negotiation, and transaction management.

If you are considering selling your business; or are interested in preparing your business for sale in the future, we invite you to contact us for a consultation. Our experienced team can help you understand the value of your business, develop a strategy for maximizing its value, and guide you through every step of the sale process. Contact us today to learn more about how we can help you achieve your business goals.