Selling your business can either be a regular part of your business day or a time of change for you and your family. Whatever the case, you want to take such a large sale seriously and get the most possible.
Things to do before selling:
- Get your finances in order
Anyone interested in buying your business will require detailed financial information. They will also require that these finances be verified by a third party. Have a company provide an audit for at least three years.
- Hire a good team
If you run absolutely everything on your own, buyers might be worried about what will happen when you buy the business and leave. Give them competent and reliable management that can keep the company running smoothly throughout the transitional phase.
- Hire a business broker
A business broker will be your greatest asset during a corporate sale. They will give you an honest assessment of what your business is worth and write up a detailed description of your business. They will be able to present this information to potential buyers. Many times, they will also be able to find these potential buyers.
Sell when you're doing well
Too often, people sell their business when they notice a decline in sales and profit. Waiting until this point is a huge mistake, and you should sell when you're business is doing well. People want to buy a successful business. You will have more buyers if you can make people believe this is a business that will give them the opportunity for money. The better your business is doing, the more money you will be able to get for it. If you want to own a small business, you will be happy that your business is doing well. If you want to make money, you will seize the opportunity to sell a lucrative business at its peak.
Selling your business doesn't mean that you have to completely remove yourself from all aspects of your former career. You can retain a specific percentage of ownership in the company while still selling it through a process called recapitalization. This provides owners the opportunity to stay involved in the business without the same amount of pressure and financial responsibility. Some agreements let the original owner slowly step away at their own pace. This is a great option for owners who want to spend more time with their families or other business pursuits while still leaving the option for their return open.
For more information, contact companies like The Enterprise Group.