5 Best Practices For Preparing Your Business For Sale
Preparing Your Business For Sale?
Here are five best practices you don’t want to miss out.
Are you ready to put your business up for sale? Here are some best practices we recommend you use to properly prepare your business for the sale.
Business for sale
When you have a business for sale, you need to be certain that you are leaving no stone unturned when it comes to the details.
In addition to figuring out exactly why you want to sell, you'll need to cover your legal bases and come up with a strategy that works. This will help you fetch the biggest price, while also getting help with negotiating the deal.
Follow these tips so you can prepare your business for sale.
1. Get a Thorough and Up to Date Valuation
For starters, you'll need to get a proper business valuation. During a valuation, professionals that understand the market will take an objective look at your company to see how much it is worth.
They will look into all matters of the business, including your cash flow, debt, future growth potential, and other variables.
When your business has been valued, you will know what kind of sell price the market dictates and how much you can stand to earn. Having this report will also give you leverage and clarity when you're speaking to buyers.
Start to put together documentation for your business well in advance so that you can show clean, accurate records of your revenue, budgets, and other important matters.
2. Understand Completely Why You Want to Sell
Aside from financial implications, you need to know exactly why you intend to sell the business.
For some, it may simply be time for retirement, and selling the company can give you plenty of liquidity. You may also be at a point where cutting your losses and selling a majority of your company in an acquisition might make good sense.
Your reason for selling will help you choose which strategy can work best for you.
3. Carefully Vet Your Prospective Buyers
In addition to the sales price, you need to know who you're selling the company to.
Work with a business broker so that you can research every buyer's background. Finding a broker is crucial because studies show that only 20 to 30 percent of companies ever even find a buyer.
When you are seeking a buyer, move as carefully as possible so that your company lands in good hands, and at a good price.
4. Have a Plan in Place For the Transition
You need to have a solid exit strategy in place so that you can comfortably transition ownership and management.
When you have a plan, you're better able to choose a successor and make sure the company is in good hands once the sale goes through. It will protect the brand moving forward, and any future equity you might retain in the company.
5. Get Some Marketing Help
Your first two priorities should be to get legal help to know exactly where you stand and making a point to stay silent on it until the time is right for you to share terms with the public.
Once you are ready to announce to the public, make sure that you have a marketing team in place to help you communicate your message.
Follow the Right Tips When You Have a Business For Sale
When you have a business for sale, these are the tips that you need to keep in mind. It will help you get the best deal while protecting your interests.
Get in touch to set up a free consultation for our business sale and acquisition advice.
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