Selling a business is something that you might do for a variety of reasons. Regardless of your reason, it’s essential that you learn the correct way to sell your business.
This takes an all hands on deck approach and requires you to think about how you can maximize value while dotting every “i” and crossing every “t.”
We’ve got you covered when you’re getting ready to sell your business and are in need of such information. Take the time to sell your small business on your terms by following the information in this article.
1. Get an Accurate Appraisal of Your Business’ Value
Your first order of business needs to involve appraising your company. You’re undoubtedly close to the situation since your business is a labor of love.
However, you need to get an unbiased opinion on your company’s current market value. This lets you know the real picture of how much money you can expect to fetch in a business sale.
Getting your business appraised will allow you to tally up assets, get a clear picture of your company’s revenue, run several cash-flow analyses, and assess the qualitative strengths and weaknesses of your business.
Professionals that help companies with sales understand these formulas and factors and will help you get a clear picture of what you should expect. From here, you can also take your own steps to improve the overall value of your business.
Knowing the value of your business might lead you to run a campaign of Holiday Radio Commercial Ads to drive up brand value, which can lead to a more profitable sale when the next quarter rolls around.
2. Ask Yourself Why You’re Selling, and Come Away With Clarity
It’s also important that you ask yourself why you’re deciding to sell the business.
Perhaps you put the years in and no longer wish to operate the business. If you have no one to pass it along to, selling the company allows you to cash out and enjoy the rest of your life doing whatever you wish.
Another business owner might see the writing on the wall that their company is failing and want to get out while maximizing value. Depending on the outcome you’re hoping for, you might have different strategies when it’s time to sell your business.
3. Uncover Every Part of Your Books and Records
It’s also important that you start running through your financials to get clear on where your company stands. Take a hard look at your books and begin archiving this information.
You will undoubtedly have to disclose financials so that you’re being transparent during the sale of your business. Having this information organized upfront will only bode well for you.
4. Bring a Certified Public Accountant (CPA) Onboard to Help You Out
You also need to bring professionals on board that will guide you through the nuts and bolts of selling a company.
Take the time to start looking for a Certified Public Accountant (CPA) that can help you with the deal.
When you’re looking for a CPA, ask them how long they have been in business and what sorts of specialties they stick to.
The clearer you are on the work your accountant specializes in, the easier it’ll be for you to bring a professional in that will serve you. Have an accountant keep track of all your financial information and quickly point out errors that could otherwise become setbacks during the process.
5. Consult With a Broker That Can Guide You Through the Process
Without question, working with a broker to sell your company will help you out. These are seasoned professionals that can both market your business for sale and facilitate the process.
Business brokers will help keep the entire situation on track through every stage. They will layout time frames and objectives that will help maintain focus and direction. These professionals also have beefy contact lists that they can help use to get your business sold.
Many business brokers also do business valuations in-house and can assist you all the way through the closing process.
6. Reach Out to Your Networks for Potential Buyers
It would surprise you to learn just how many leads you can get by simply reaching out to your network. While many companies go wide first when it’s time to sell, you may find some prospective buyers already in your network.
Make sure that you’re reaching out to other professionals you trust so that the entire sales process remains confidential. This helps you maintain leverage and send out feelers before marketing the sale wider.
7. Work With Lawyers to Close the Deal
You owe it to yourself to bring some business attorneys in to help you out with the sales process. These professionals will take offers and read through every contract with a fine-toothed comb.
Having these professionals as an added set of eyes will let you know what you’re agreeing to and can help you avoid mistakes that can cost you.
Sell Your Small Business on Your Own Terms
If you’re trying to sell your small business, the tips in this article will help you to the fullest.
Do everything in your power to research the market, and link up with professionals that can assist you. You’ll be glad you did once your business fetches a nice price tag on the open market.
Make us a resource when you’re thinking about selling your business and need more information.