General
How to Prepare for Selling Your Business
Many owners decide to sell their business for a variety of reasons. Whether that may be to retire or move on to another business venture, they have decided that want to pass this business along to another owner. The question is, how do owners prepare to sell their business?
The Sunbelt Business Broker of Durham have worked with many business owners to help them get more than they ever dream of getting for their business. The process may vary for every business, but properly preparing an exit makes for a smoother, faster sale every time. Whether that exit is 1 or 5 years away, owners can prepare to sell their business now.
5 steps to take now to prepare for selling your business are:
- Get the house in order. It is expected that a business has at least 3 years’ worth of financial data. If owners aren’t looking to list the business for at least another year, it makes sense to start organizing and keeping more detailed financials from this point forward, to ensure buyers that they are getting the most accurate information. Detailed financials make owners look more trustworthy and their business more attractive.
- Start researching business brokers. A business broker plays a valuable role in the process of selling a business. By understanding the business’s area and industry valuations for the area, business broker put sellers in the position of power by making them the most knowledgeable seller.
- Get a business valuation. Getting a business valuation gives business owners an accurate view of how the market will view their business. In addition, it provides owners with the perceived strengths and weaknesses of the business while there is still time to correct them.
- Have a transition plan. The business can’t be run from the owner’s head once the owner is gone. Owners have to start documenting their processes, have employees for the new owner to turn to for help, and anything else to ease the transition.
- Don’t Lose Focus. Don’t focus so much on the sale of the business that current number decline. The advantage of starting the process early is that the process can be completed gradually. Owners that lose focus and suffer from a dip will only give more power to people looking to buy their business.
Selling your business is a process which is why it is best to start early. Contact us now to speak to our experts about selling your business and getting your free business price point evaluation.
