There are many reasons as to why you might have decided that the time has come to sell your business. You might want to cash in on all your hard work, you might have received an offer too good to refuse, you might be looking to move into another industry, or you might have made enough money to retire to the Bahamas.
Whatever the reasons, there are many steps you need to take before selling your business to make sure that the sale is a success. Here’s our brief guide on how to sell your business.
Be certain that selling is what you want to do
You might have heard of sellers remorse when it comes to selling a home, but did you know that it is a very real effect of selling a business as well? That is why you have to be 100% certain that you are selling at the right time and for the right reasons. Make sure that you aren’t going to spend the next months or years regretting selling because of what it could mean for your employees or your customers. You also need to have a clear plan in place of what you are going to do once the sale has gone through. There’s nothing worse than selling and then not knowing what to do with yourself after as chances are, you’ll end up yearning to still be involved with your business.
Get the help of experts
Selling a business can be a stressful experience, and one way to minimize that stress is by getting the help of a team of experts. The last thing you want is to worry about whether you’re underselling or the ins and outs of the legal side of things. Hire a broker to help you vet buyers and answer questions. Get in an accountant who can take care of the financial side and make sure you have a business lawyer on hand to draw up all the relevant paperwork so that the sale and the buyer’s obligations are watertight.
Make sure your finances are organized
Any potential buyer of your business is going to want to carry out due diligence before completing a purchase, both for legal reasons and their piece of mind. That means you need to be organized. Have five years’ worth of profit and loss statements, tax returns, supplier contracts, and customer data all available so that the buyer knows they are getting a well-organized company which won’t have any skeletons hiding in any closets once they’ve bought.
Justify your asking price
You aren’t the one buying your company – another entrepreneur is. That means that you need to justify the asking price to them to get the total that you want from a sale. You can do this by showing them how the business can make them money in the future and not just through profit margins. Present them with a plan of how they might grow the business in the future and be sure to make them aware of how much future contracts and deals are going to be worth.