How To Sell Your Business

When it’s time to sell a business, doing it right makes a huge difference. It could increase the amount of money paid for the business, help make sure the business continues to be successful in the future, or be the difference between closing for good and finding a buyer. If you’re thinking about selling, take the time to learn more about what you need to do to make sure the sale is successful and that you’ll be able to find the right buyer as soon as possible. 

Find Out the Value of the Business

When it’s time to sell your business, understanding its value is a crucial first step. Is the business really worth selling? Is the sale going to provide you with sufficient funds for your retirement or the new business you plan to open? The value can tell you a lot about the business, its chance of selling in today’s market, and whether or not you’ll want to take any extra steps to increase profits further before beginning the sales process. 

Go Through the Financials

Take time to look through the financials of the business and look at debts as well as income. Make sure everything is in order and that there aren’t going to be any red flags when buyers take a look at the accounts. Buyers are going to look closely at everything that’s in the business books, and likely won’t want to buy a business if there are red flags, like the owner’s personal assets listed as assets for the business. If needed, work with an accountant to make sure everything is in order.

Prepare the Exit Strategy

There are various exit strategies, so which one is the right one? It might not make sense to look around for a buyer for the business. Instead, a better exit strategy may be to work on an acquisition and hand control over to another business. Or, it may be a good idea to sell the business to a trusted employee, instead of searching for a buyer who isn’t connected with the business already. Take time to think about which exit strategy is the right one and plan for it. 

Find a Broker to Work With

As it gets closer to time to sell, finding a broker to work with is an important step to take. Brokers are experienced in buying and selling businesses and they already have connections with people who may want to purchase your business. Working with them allows you to connect with more potential buyers, make sure everything is done right to reduce liabilities and risk during the sale, and increase the potential for the business to sell. 

Prep for the Sale

Finally, it’s time to prep for the sale itself by making sure all documents are in order. The business broker can help with this and will explain which documents are needed. There is typically a long list of documents needed, including a confidentiality agreement, offer to purchase agreements, financial account reports, vendor lists, and more. This can take a while, so start working on the documents as early as possible.

If you’re ready to sell your business, now’s a great time to get started. Use the steps here and find a business broker to work with so you have the help you need throughout the process. With the right steps and help, it’s possible to sell your business and start the next chapter of your life.