Description of our Primary Customer:

• Our customers are self-reliant and proud of it. They are very practical and laserfocused in their approach to business ownership. o They employ 5+ people and have enough confidence in their employees and in their managerial systems to be able to leave on a vacation and not fear the business will fall apart. The owner’s skill set and value to the business is not irreplaceable. A new owner could step into the owner’s shoes with appropriate training and transition time.
• Their business has a decent probability of qualifying for bank financing. Their employees are legally authorized to work in U.S. The company income and expenses are well documented on electronic financial statements. The numbers shown on the financial statements correspond with state and federal filings and tax returns.

They can readily produce 3+ years of financial statements.

• They enjoy between $200,000 and $600,000 in discretionary earnings (paycheck plus net business profits, plus/minus several other adjustments. o Their revenues are growing but not at a rate leading to unsustainable debt levels and impaired cash flow. o They are prepared to be transparent with the prospective buyer to avoid a deal blowing up. For example, if the business carries inventory, the business owner would be prepared to answer wide-ranging questions about inventory. Questions like what inventory is slow moving or obsolete? How is the inventory valued?  What is the inventory turnover rate? Seasonal fluctuation history? Minimum order quantities?  Volume discounts?
• They are willing to run the company at full speed throughout the marketing process and through closing.
• They are willing to stay on for a reasonable period post-closing to ensure a successful transition.
• They are willing to consider offering a small level of seller financing if it will enhance the total dollars received for the business and facilitate a quicker sale.

Key Exit Questions our Customers Must Ask o Is your business ready for you to exit? o Are you (and family) ready for this exit to happen?

Exit Planning

If the business is ready to be purchased by a new owner, job well done!  If, however, the most probable sale price of the business in its current state is not sufficient for the owner to comfortably retire, and the business owner has the luxury of time, there are numerous ways to enhance the probable sale price of the business.  These include:  

• Improve profitability o Create recurring revenue
• Manage cash flow to demonstrate financial stability o Minimize debt to improve financial health o Streamline operations o Invest in technology
• Develop strong systems and processes to ensure smooth operations and easy handover.
• Build a strong team. o Cultivate customer loyalty.
• Enhance Your Brand reputation.

Staging the Business for Sale

If the business is not completely ready for sale and the owner has limited time available for health or other reasons, another option is focusing on one or two areas that can help “stage” the business prior to sale.  This might take the form of documenting existing procedures and systems.  Or perhaps the owner can try to collect more customer satisfaction reviews.  If the inventory is disorganized and dusty, maybe the inventory should be organized, and obsolete inventory sold/discarded or cordoned off and donated to new owner.  The premises can always be made tidy.

Probably the most important aspect of staging a business is identifying issues that the buyer is certain to find out about and letting them know about them up front, so the business owner can be transparent while controlling the narrative.  If the issue is a deal breaker, it is better if the deal die earlier than months down the road.  This strategy saves the owner from deal fatigue and disappointment.  

Personal Readiness to Exit

The last question, are you ready to exit, is one of the most difficult ones.  Many successful business owners do not give this question the thought it deserves. They have in mind a vague idea that they will travel a bit, maybe spend more time with the grandkids, etc.  What they don’t consider is that they are used to going 50+ hours a week at a job that gives them recognition and a sense of purpose.

To abruptly step out of that role, to say goodbye to employees that were “family” can bring a big sense of loss and a feeling of being adrift.  If the spouse is non-working and suddenly his or her routine is totally changed by the retiring owner’s presence in the home 24/7, that can bring unforeseen stress to the couple.  

It is important to recognize that letting go of a business built from the ground up is hard.  Aside from emotional considerations, losing an income stream can be uncomfortable, especially if kids are still in college or early “adulting.” The tax implications of selling a business can catch an owner off guard. Snake River Business Brokers offers some planning tools to help.  

In conclusion, Snake River Business Brokers understands the unique challenges and opportunities that come with selling a business. We cater to self-reliant business owners in Idaho and Texas who are ready to transition their companies now or within the next 3-5 years.

Our comprehensive approach goes beyond simply listing your business for sale. We help you assess your readiness, both personally and financially, and create a plan for what’s next. Whether your business is primed for sale or needs strategic improvements, we offer tailored guidance and support to maximize its value and ensure a smooth transition.

We understand that selling a business is a major life decision. That’s why we focus on transparency, honesty, and open communication throughout the entire process. We’re committed to helping you achieve your goals, secure your financial future, and embark on your next chapter with confidence.

If you’re considering selling your business, we invite you to contact Snake River Business Brokers for a confidential consultation. Let us put our expertise and experience to work for you, ensuring a successful sale and a fulfilling next chapter in your life.