What to Do Before You Sell Your Business
You must plan carefully if you want to sell your business. Just as it is important to clean up clutter in the home, get the garden neat, and spruce up the appearance of the house before putting your residential property on the market, you must also prepare your business for the sale.
You need to understand why sales fall through and how to prepare for a quick and easy business transfer. Unrealistic expectations, poor seller or buyer preparation, unrealistic demands by the buyer, and a lack of proper financial information are among the main reasons for business transactions failing. Don’t become one of the statistics!
Organise Financials and Documents
Keep in mind that you cannot sell your business at a reasonable price if the financials are in disarray. Do the paperwork. Get bank statements, have the books audited, and make sure that you have a tax clearance certificate and a proper accounting system in place for a buyer to conduct a proper due diligence.
Buyers generally require your recent balance sheet, income statement, asset list and business valuation report. You need the financials for at least three years unless the business has not yet been running for three years.
Collect all the legal documents relevant to your particular business. If it is a restaurant, for instance, you will need the fire certificate, food license, liquor license, and gas compliance certificate to be ready. In addition, get all the documents regarding the business entity in place. This means you must have the Memorandum of Incorporation, permits, and zoning compliance documents at hand. If you have procedure manuals, make sure that the files are up to date and neat. Prepare supplier and customer lists. If you have debtors, then the debtor books are essential.
Dated technology affects the price at which you can sell your business. Spend a bit to upgrade your Point Of Sales system, computers, security, and electronics.
This helps for a smooth due diligence.
A sinking ship is certainly not an attractive option for buyers. Don’t wait until your business is at rock bottom before you sell it. Rather take steps with the help of a business consultant or marketing expert to boost sales before you sell your business. You need at least six months of growth to make the business an attractive option for buyers.
Find an Experienced Broker
Once done, it is time to find a broker to help you sell your business to pre-qualified buyers. Rather than having to deal with browsers, you can continue with business operations and have the broker screen potential buyers.
Let us help you sell your business at the best possible price. Get in touch for immediate assistance..