An Easy Guide To Successfully Selling Your Business
You've worked hard over the years to build your small business and now it's the right time to sell. The process of selling a business can be a complex task, and of course you want to get the best possible price. Ideally, you need plenty of preparation time in order to present your business in the best possible light. However, this is not always achievable, for numerous personal or financial reasons, but you still want to attain the best outcome possible within your time frame. Use this practical guide to help you deal with the many aspects involved with sale of your business and discover where you can find assistance.
Put Your Best Foot Forward
Be prepared for the intense scrutiny of your business from prospective buyers. You want to present it in the best possible light. Have your books in order with all financial statements accurate and up-to-date. At a minimum you will need:
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The current and previous year's balance sheets and profit and loss statements
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Previous year's tax returns
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A list of fixtures, equipment and furniture
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A list of inventory
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Lease agreement (if premises are rented)
Other documentation is also likely to be needed, particularly if a potential buyer has reached the due diligence stage. For example, insurance policies, bank statements, equipment leases, customer contracts and employee contracts could all be required.
It is also worthwhile giving your premises a spruce up and carrying out a few cosmetic improvements. Ensure that it looks attractive for a potential buyer. Remove outdated stock and have tidy equipment in top working order.
Consider Professional Assistance
The services of a business broker can be very much to your advantage in promptly finding a buyer and making a profitable sale. The many tasks that business brokers perform can make the process go much more smoothly and remove many of the challenging aspects. A good broker will perform a number of essential tasks to assist with your sale that include:
Producing a business valuation
With their knowledge of the industry and current market conditions, together with their appraisal of the circumstances of your business, a broker is able to make an informed valuation.
Creating a marketing plan
Together with you they will plan the best strategies of promoting your business, where and when it will be advertised and the style of campaign.
Handling buyer inquiries
A broker will use their experience to sort out the genuine and qualified buyers, and put them in contact with you. The process may then advance to "due diligence" stage where the prospective buyer undertakes a comprehensive appraisal of the business.
Negotiating terms and conditions
The broker will work with interested parties to negotiate terms and prepare the necessary legal documents required for sale.
Find The Best Support
You want a broker that will get your business noticed quickly and attract potential buyers: a broker that has established relationships with other professionals in the area. This provides them with a network of accountants, lawyers, and other experts ready to be called on to help facilitate the way they do business.
Every industry has its own particular culture and specific needs. A broker with a specialty in your industry will be in the best position to represent your business. They are on top of the current price ranges in a specific geographic area.
Dealing with a broker that handles similar sized transactions is also beneficial. If they regularly deal with properties considerably over your price range, they are not likely to devote as much of their time to your sale and provide the essential attention you deserve.
Ultimately, selling your business is all about having realistic expectations and avoiding the pitfalls and unexpected surprises. It can be a little complex, but also very rewarding. Having successfully sold your business you are then free to retire to the country, lie on the beach or move on to your next exciting venture.