A Better Approach to Selling Your Business


According to the National Association of Realtors, the median selling price for U.S. homes as of November 2015 was $220,300. If you think about it, it becomes apparent that the family home is most likely a family's greatest asset. There are exceptions, of course, but this holds true for most American families. The process for selling the average home is well understood and usually straightforward: A realtor evaluates the property, suggests a fair selling price based on recent comparable sales in the neighborhood and lists the property for sale. An interested buyer makes an offer and, following some negotiations, an agreement is reached and the sale is completed.

For people who own a business, however, it is the business that may hold most of the family wealth. But businesses are much more difficult to value and sell. Whereas a home valuation is based upon such things as location, condition, size and floor plan, these factors are only a part of the equation for determining the value of a business. A business's real property might have a rather small valuation, but its value as an income-producing entity might be huge; conversely, the sum of its real property, inventory and equipment might be millions of dollars, but its business operations might be barely profitable. Moreover, whereas almost anyone could decide to purchase any home within his means, the market for a business is, in a practical sense, restricted to those who have the interest and skill to operate that business.

One obstacle, then, is to identify a pool of potential buyers who are ready, willing and able to purchase a business; this job is often given to professional business brokers. Although the rules vary from state to state, in most states a licensed real estate agent is allowed to provide this function with only a minimal registration or licensing requirement. Another problem is that realtors who are unfamiliar with the selling of businesses need a reliable resource to provide such things as business valuations, financing options, deal structures, a listing platform and other services indispensable to this process.

"As state regulations permit," notes REGULUS CEO David Emery, "realtors can expand the scope of the services they offer, businesses wishing to sell will have additional options.

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