No matter what you are selling, you always want to get the best possible price for your offering. So, you put in a little extra effort and prep work. If you are selling a car, you’ll wash, clean, and vacuum it. If you’re selling a house, you’ll put on a fresh coat of paint. If you want to sell your business, the process is no different. You’ll want to prepare in advance to showcase your business in the best possible light for potential buyers. By planning ahead, you can move your business to the top of the list for potential buyers, have a more transparent sales process, and receive the best value for your business.
Here are a few tips to help you prepare your business to be purchased.
Starting at least one year in advance of the sale, get your financials in order. Your financial statements and financial records are the key to determining the value of your company.
Have an accountant review your financials and make sure everything is in order.
Consider performing your own audit, so that nothing will be a surprise during the sales process.
Make sure all of your paperwork is up to date, neat, and orderly.
Document everything. The more information you can provide – the better.
Review Staff and Management
Outline the jobs and responsibilities of everyone on your staff.
Determine key performance indicators for each position.
Create a Growth Plan
Take the time to create a plan that shows the potential growth for your company in the coming years. Show future markets, products, services, and sales channels. Show potential buyers that an investment in your company is one that will grow.
Consider Using a Broker
Meet with a few brokers in your area or market and select one to work with. The majority of business sales are negotiated through brokers, who can help connect you to qualified potential buyers, guide you through the sales process, and help you negotiate the best deal for your business.
Create a Marketing Packet
Create a “sales” kit for your business that will provide potential buyers with a bird’s-eye view of your business. Include an overview of your financial information, management team, inventory, assets, and clients.
Obtain Expert Advice
Meet with an accountant or lawyer to devise a plan for the best way to sell your business without paying excessive taxes.
No doubt you’ve put in years of time and effort to build your business. If you are preparing to be purchased, taking the extra time to plan and carefully prepare will allow you to receive the highest returns on your investment and hard work.