Selling your business can be a good thing. You can finally get the value that you have been dreaming about all along. It can also be an excellent retirement package or even a chance to move on to another industry. Whatever your motivation is, you should handle the sale professionally.
It Takes Preparation To Sell
Good selling should not be a knee jerk reaction. It should be a strategic decision. It should also be a time when you get things in order in readiness for sale. Put your records in order. Documents are crucial when it comes to selling a business. A company that keeps its records accurately can project the image of an organized owner.
People can overlook a few other things if everything else is pristine. You need businesses processes and systems. Buyers will pay a premium for a business that can transition smoothly. You may need an expert or two to guide you on the preparation phase.
You may need an accounting/tax expert to advice you on your financials. You may also need a consultant to help you with operationalization, business efficiency, and perhaps succession planning.
Pre-qualifying Buyers Is Important
Keeping the information about selling secret is a tough job. Keeping company secrets during a sale is also another climbing lane. During a listing, you will need to keep the circle as small as you can without compromising on the options.
Pre-qualification eliminates all jokers. It also excludes all those who are not convinced. A pre-qualified buyer should be able to sign non-disclosures and such legal documents that will protect your business.
The Broker Represents You But Does Not Replace You
Hiring an expert to help you with the sale of the business is a wise decision. However, there are major misconceptions about the business broker. Some think that once they hire a broker, they are not required in the deal. That cannot be further from the truth.
You are the vision carrier of your business. You have intimate details about your business. You know the IN and OUT of the industry and business. Buyers will want to ask you questions. They will want to know how you plan to hand over. You will be pivotal in the deal.
Separate Your Business From Family
Do you have your family member at the helm of the company? You may want to change that. Family-held businesses can sell, but they must have a clear path on how they can survive without the founding family.
For a business to be ready to sell, it should have some systems that allow things to work harmoniously. A team is required to manage the affairs of your company.
Not Every Time You Take The Maximum Upfront
If you are merely cashing out a retirement package, you may want to hold some of the funds to benefit from lower tax brackets. If you’re going to venture into another investment, getting the maximum upfront is okay.
Your business should give you satisfactory returns on the point of sale. Don’t let anything ruin your chance of a reasonable payday.