I Need to Sell My Business in Tampa: Where Do I Start?

By Michael Shea, Transworld Business Advisors

If you’re sitting at your desk thinking, “I need to sell my business in Tampa,” you’re probably asking yourself a lot of other questions at the same time.

What is my business worth?

Who would buy it?

How long will it take?

Will my employees find out?

Will my customers find out?

And perhaps the biggest question of all:

How do I make sure I don’t leave money on the table?

I’ve been helping business owners answer those questions for more than two decades as a business broker with Transworld Business Advisors.

I’ve seen good businesses sell for good money.

I’ve also seen good businesses fail to sell because the owner wasn’t prepared.

There is a big difference.

Selling a Business Is Not Like Selling a House

I hear this all the time:

“Mike, can’t we just put it on the market and see what happens?”

You can.

But I wouldn’t recommend it.

Selling a business involves valuation, confidential marketing, buyer qualification, negotiation, financing, due diligence, legal documents and closing.

And unlike real estate, there isn’t a Zillow that tells you exactly what your business is worth.

That’s why I start with the numbers.

What Is Your Tampa Business Really Worth?

Before you put your business on the market, you need to understand its value.

And I’m going to give you a little advice here:

Don’t start with what you need to retire.

I’ve had owners tell me, “Mike, I need $2 million.”

That’s fine.

But the business doesn’t care what you need.

The buyer doesn’t care what you need.

The market determines what the business is worth.

Depending on the size and type of company, we may look at Seller’s Discretionary Earnings, EBITDA, revenue, comparable sales, assets and a number of other factors.

I also believe strongly in looking at actual Florida business-sale data, not just asking prices on internet listing sites.

I’ve written more about that in Florida Business Comps: The Key to a Fair Deal for Buyers and Sellers.

Don’t Wait Until You’re Ready to Retire

Here’s one of the biggest mistakes I see.

An owner says:

“Mike, I’m ready to retire.”

Great.

“When do you want to sell?”

“Six months.”

That’s where things can get difficult.

Some of the biggest drivers of value take time to fix.

Maybe the owner is doing everything.

Maybe the financial statements aren’t clean.

Maybe there is too much customer concentration.

Maybe there isn’t a management team.

Maybe the business has no documented systems.

You can’t necessarily fix all of those problems in 30 days.

That’s why I talk so much about exit planning.

Exit planning isn’t just about selling.

It’s about building a business that is more valuable, transferable and less dependent on you.

I’ve written more about this in Unpacking Exit Planning: A Tampa Business Broker’s Perspective.

Confidentiality Matters

This is another reason I believe owners should think carefully about how they sell their business.

You don’t want your employees finding out from Facebook.

You don’t want your biggest customer hearing from a competitor.

And you don’t want vendors calling you asking what is going on.

A professional business sale should be handled confidentially.

Potential buyers should be qualified before sensitive information is released.

The objective isn’t to have thousands of people know your business is for sale.

The objective is to find the right buyer.

Who Is Going to Buy Your Tampa Business?

The answer depends on the company.

Your buyer might be:

An individual looking to become a business owner
An existing business owner
A strategic buyer
A competitor
A private equity-backed company
An investment group
An entrepreneur relocating to Florida

One of the advantages of working with a business broker is having access to a network beyond the people you happen to know.

At Transworld, we have a national network and resources that allow us to market businesses beyond just the Tampa Bay area.

You can learn more about the Tampa office through Transworld Business Advisors of Tampa.

The Highest Offer Isn’t Always the Best Offer

This is another lesson I’ve learned after hundreds of transactions.

Let’s say Buyer A offers you $2 million.

Buyer B offers $1.9 million.

Sounds like Buyer A wins.

Not necessarily.

What if Buyer A needs aggressive financing?

What if the buyer has limited experience?

What if the offer has multiple contingencies?

What if the buyer’s financing isn’t strong?

What if the deal is likely to get retraded during due diligence?

Meanwhile, Buyer B may have the financing, experience and resources to close.

A $2 million offer that doesn’t close is worth nothing.

The goal is not simply to get an offer.

The goal is to get a transaction across the closing table.

So, I Need to Sell My Business in Tampa. What Do I Do?

Start with a conversation.

You don’t necessarily have to list tomorrow.

In fact, I would encourage many owners to start much earlier.

Let’s determine what your business is worth.

Let’s look at comparable sales.

Let’s identify the risks.

Let’s identify opportunities to increase value.

Then you can make an informed decision.

I’ve been doing this since 2005, and my team and I have closed more than 450 transactions representing over $1 billion in sold business volume.

If you’re thinking, “I need to sell my business in Tampa,” the first step doesn’t have to be putting it on the market.

The first step can simply be finding out what it’s worth.

Want to Learn More?

Michael Shea is a Tampa Bay business broker with Transworld Business Advisors. He works with owners throughout Tampa, St. Petersburg, Clearwater, Lakeland, Orlando and Central Florida.

Schedule a confidential business valuation or contact Michael to discuss your exit strategy.

Michael Shea represents the Tampa Florida Transworld office. In business since 2005, he has established a reputation as a trusted business broker across Florida’s key markets- from Tampa to Orlando, Melbourne, and more. Over the past two decades, Michael and his team have closed over $1 Billion in sold business volume and presided over more than 476 transactions. His credentials include the IBBA Certified Business Intermediary®, and most recently, the prestigious Certified Exit Planning Advisor® (CEPA) credential. He is also a Florida Licensed Real Estate Broker and Business Brokers of Florida Board Certified Intermediary . Shea is a member of the VRMA and a recognized expert in property management and vacation rental management business sales