Selling a business due to relocation can be a complex process, especially when you’re moving out of state. At Unbroker, we understand the unique challenges this situation presents.
This guide will walk you through the essential steps to prepare, market, and manage the sale of your business remotely. We’ll cover strategies to maximize your business’s value and attract potential buyers, even from a distance.
How to Prepare Your Business for Sale Before Relocating
Organize Your Financials
Start with a thorough organization of your financial records. Clearly organized and reconstructed financial statements can maximize the value of your business in the eyes of potential buyers. This includes profit and loss statements, balance sheets, and cash flow statements. Include tax returns and any financial projections you’ve made.
Use accounting software to streamline this process and consider hiring a professional accountant to review your books.
Improve Business Performance
Focus on increasing revenue and cutting unnecessary costs. A business with an upward trend attracts more buyers.
Examine your inventory. Clear out slow-moving items and negotiate better terms with suppliers. These actions can improve your cash flow and make your business more appealing.
Create a Detailed Business Overview
Compile a comprehensive business overview that includes:
- Your business history
- Unique selling propositions
- Customer demographics
- Competitor analysis
- Growth opportunities
Be transparent about challenges too. Honesty builds trust with potential buyers. Include information about your relocation plans and how the business can thrive without you.
Address Legal and Regulatory Issues
Resolve any outstanding legal or regulatory issues before listing your business. This might include:
- Renewing licenses and permits
- Settling pending lawsuits
- Ensuring compliance with local and state regulations
Don’t let these details derail your sale.
Prepare for Due Diligence
Anticipate buyer questions during due diligence. Create a folder (physical or digital) with all relevant documents:
- Contracts with customers and suppliers
- Employee agreements
- Lease documents
- Equipment lists and maintenance records
Having these ready demonstrates your seriousness about selling and can accelerate the process.
With these preparations complete, you’ll be ready to move on to the next crucial step: marketing your business effectively to potential buyers, even from a distance.
How to Market Your Business Remotely
Maximize Online Platforms
Online business-for-sale marketplaces offer extensive reach for remote sellers. BizBuySell’s Insight Report shows the median sale price reached $349,000, up 4% year-over-year, while the median cash flow increased 6% to $160,000, and median revenue rose 3% to $700,000. This trend highlights the growing popularity of digital business shopping.
Create a compelling listing that includes:
- High-quality photos
- Detailed financial information
- Clear description of your business’s unique value proposition
Mention any proprietary technologies, exclusive contracts, or other assets that set your business apart. These details can attract serious buyers and differentiate your listing from competitors.
Create Virtual Tours
Virtual tours have become essential for out-of-state buyers. They include interactive features, like 360-degree views, making house hunting easier and more convenient.
Use tools to create immersive 360-degree tours of your business premises. This allows potential buyers to explore your business remotely, which saves time and increases interest. Include these virtual tours in your online listings and on your business website.
Use Social Media Marketing
Social media platforms offer powerful tools to reach potential buyers. LinkedIn excels at B2B marketing, with HubSpot reporting that 89% of B2B marketers use LinkedIn for lead generation, and 62% say it produces leads for them effectively. Create a company page if you don’t already have one, and share updates about your business sale.
Facebook and Instagram provide sophisticated targeting options for advertising. Use these platforms to reach potential buyers in specific demographics or industries. This targeted approach can help you find the right audience for your business more efficiently.
Engage Local Representatives
While you relocate, having local representation in your current location proves invaluable. Consider hiring a local business broker or real estate agent who specializes in commercial properties. These professionals can:
- Handle in-person inquiries
- Conduct physical tours
- Provide local market insights to potential buyers
Tap Professional Networks
Your professional networks can lead to potential buyers. Reach out to:
- Industry associations
- Chambers of commerce
- Trade groups
Many of these organizations have newsletters or member forums where you can advertise your business for sale. Your industry connections might lead you to the perfect buyer who understands the value of your business.
As you implement these marketing strategies, prepare for the next phase: managing the sale process remotely. This step requires careful planning and the right tools to ensure smooth communication and due diligence.
How to Manage a Remote Business Sale
Secure Digital Communication
Set up a secure digital workspace for your remote business sale. Use tools like DocuSign for e-signatures and Dropbox for file sharing. These platforms offer bank-level encryption to protect your sensitive business information.
Cybercrime will cost the world $10.5 trillion annually by 2025. Protect your business sale from contributing to this statistic. Implement two-factor authentication on all accounts and train any team members involved in the sale on basic cybersecurity practices.
Virtual Meetings and Negotiations
Video conferencing has become standard for business interactions. Zoom reported a 355% increase in revenue in the second quarter of 2020, highlighting the shift towards virtual communication.
For effective virtual meetings with potential buyers:
- Test your equipment before the call
- Use a neutral, professional background
- Dress professionally, as you would for an in-person meeting
- Keep all relevant documents easily accessible
Record yourself practicing your pitch on video. Watch it back to identify areas for improvement in your presentation style.
Structured Due Diligence
Create a virtual data room to streamline the due diligence process. Platforms like Intralinks or Merrill DataSite allow you to organize documents, control access, and track viewer activity.
Implement a structured timeline for due diligence:Week 1-2: Financial reviewWeek 3-4: Operational assessmentWeek 5-6: Legal and compliance check
This approach keeps the process moving and prevents delays that can derail a sale.
Local Professional Support
While managing the sale remotely, secure local support. A local attorney can handle state-specific legal requirements, while an accountant familiar with local tax laws can provide invaluable insights.
Consider hiring a local business appraiser. The National Association of Certified Valuators and Analysts supports business valuation and financial litigation by training and certifying professionals, with members specializing in these areas.
For physical aspects of the sale (such as inventory counts or equipment inspections), engage a trusted local representative. This could be a current employee or a hired professional. Their on-site presence can answer buyer questions promptly and maintain the momentum of the sale.
Leverage Modern Selling Platforms
Use modern platforms designed for business sales. Unbroker, for example, offers transparent, low-cost options that eliminate high brokerage fees. Such platforms provide access to a vast buyer network, premium marketing tools, and legal document templates. These features can significantly streamline the remote selling process and increase your chances of a successful sale.
To effectively manage productivity in a remote setting, consider using time tracking software to keep everyone on task and accountable. Additionally, investing in cloud-based systems and remote management tools can make the transition smoother for potential buyers and increase the value of your business.
Final Thoughts
Selling a business due to relocation presents unique challenges, but you can overcome them with the right approach. Meticulous preparation, digital marketing strategies, and effective remote management will attract potential buyers and maximize your business’s value. Online tools and platforms play a crucial role in reaching a wider audience of potential buyers, regardless of geographical constraints.
Secure digital communication channels and virtual meeting tools facilitate smooth interactions and negotiations with interested parties. A structured approach to managing the sale process remotely enhances your chances of a successful transaction. This includes implementing an organized due diligence process, leveraging local professional support, and utilizing modern selling platforms.
Unbroker’s platform offers a modern solution for those looking to simplify the process of selling a business while relocating. With transparent, low-cost options and access to a vast buyer network, Unbroker provides essential tools and support for a successful sale (without high brokerage fees). Their services cater to your needs, whether you prefer a hands-off approach or want to take a more active role in selling your business.
