Ever considered selling your business? The thought may seem daunting, but if you prioritise preparation, the process can be simpler than you think!
So, how do you prepare your business for sale?
1. Business Value Appraisal
The first step in preparing a business for sale is determining its value. A business appraisal analyses every aspect of the business, from the market value of its assets to its future earning prospects. An expert’s opinion on what your company is worth will help you determine whether now is the right time to sell; and how much you might be able to sell it for. It will also give you insight into how to improve the business before putting it on the market.
2. Get Your Books in Order
Getting your books in order is one of the most important steps you can take to prepare your business for sale. It ensures you have all the necessary documents ready and on hand for inspection by potential buyers or lenders. Prospective buyers will want to see evidence of your business’s financial success over an extended period of time. Review all financial statements from the past few years and make sure they’re accurate and up to date. Your accounts should be organised and include everything relevant to the business.
3. Understand Why You Are Selling
Owners sell their businesses for many reasons; what is yours? To ensure a smooth sale and avoid surprises, prepare answers as to why you are leaving. Prospective buyers will be interested in your motivations for selling and if this is something they should be concerned about.
4. Bring in the Big Guns
You may have experience running a successful business, but that doesn’t mean you know everything about selling it—and how to get the most money possible in return! Hiring a team of experienced professionals who can represent your business appropriately and have a keen understanding of the industry will help you find the best position for your business.
5. Maintain the Business
The best way to prepare your business for sale is to make it desirable. A healthy and thriving business with robust financials and a smooth operation is more likely to sell than a struggling one. By maintaining the business’s performance, paying bills on time and keeping up with the marketing effort – your business is already more appealing to potential buyers. The longer you have to prepare your business, the better chance you have at successfully selling it.
Whether you’re ready to sell your business or you’re only beginning to consider it, these tips will help give you a head start. Preparing your business for sale is a process that requires careful planning and attention to detail. And we believe the best way to prepare is to begin.
