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Who Should Be On Your Sales Team
Selling your business is a big undertaking. You’ve spent many long hours, over months and years, building a successful enterprise. It’s important to be well-compensated for all the time, energy and stress you’ve put in, and that means it’s important to choose the right team to sell your business.
Yes, it’s possible to sell your business by yourself, but gathering specialists to sell the business for you makes the process more efficient and successful. It also ensures that you won’t fall into any traps that professionals are used to avoiding. The right team ensures you get an accurate appraisal, find the right seller and give them the right information to get the best price and conditions possible.
So, who do you need on your team?
Your accountant should know the financials of your business just as well as you do. When it’s time to sell your business, all that knowledge is going to be essential.
A buyer will want to view tax returns, balance sheets, bank statements, accounts receivable and payable and valuations of equipment. Your accountant is the person who can gather and prepare this information while you continue to run your day-to-day operation.
All these details are also important when valuing your business. An accountant can help prepare a financial forecast to show potential buyers how successful the business is expected to be in the future, which may help you gain a better sales price. At the end the transaction, an accountant can help with the tax implications of the sale and setting you up for the future.
A lawyer is important at the beginning and end of the process. Again, there is paperwork that the appraiser and buyer will want to see. This includes leases, licences, patents and trademarks, employee agreements and records, business registration, insurance policies and any loans or agreements. A lawyer will be able to compile all the paperwork necessary to value and sell the business.
When an offer is made, a lawyer will be able to assess the conditions of the sale and ensure the clauses of the contract are in your best interest (and legally binding). A lawyer can also ensure that the paperwork is drawn up in a legal and correct manner so there are no surprises after the sale is concluded.
Your banker may also have access to documents needed in the selling process, especially bank statements and loan documentation. However, a good banker can provide far more value than just paperwork.
A banker experienced in business sales will know the right questions to ask to pre-qualify buyers, ensuring that they have the funds to purchase your business. At the end of the process a banker can also ensure that payment is transferred smoothly and any money you owe is taken care of efficiently.
A Business Broker
A business broker is the marketing expert in your sales team. Brokers can help ensure confidentiality as you put your business on the market. Their processes allow them to advertise and market your business without letting competitors, customers, suppliers or employees know that you’re planning to sell.
A good business broker will also have a large network of people who are looking to purchase a business. Along with a banker, they can help pre-qualify buyers, ensuring you only need to get involved with buyers who are serious about purchasing.
Experienced business brokers also understand the conditions normally attached to a business sale and can assist with negotiating the sale and contract.
It’s important to continue running your business during the sale process; a well-run and successful business is one that is attractive to buyers. You, the business owner, are the expert in running your business. Bring experts into your sales team to take care of selling your business while you concentrate on having an excellent business to hand over to the new owner.
For further information, contact your nearest LINK Business Broking Office.