Are you ready to sell your business?
Selling your business is a process, not an event!
There are a few things to consider to make the sale of your business a success! Here are a few steps to consider when you want to sell your business.
- Do not try to sell the business by yourself – Assemble an advisory team which should consist of an Accountant, a transaction attorney and a Business Broker.
- Have a clear understanding of why you are selling your business – Develop a clear and simple statement of why you are selling the business, and what you want to achieve from the transaction. Remember there is a lot more to making a good deal than getting a good price. Reduce your statement to writing and hang on to it. You will need this as you work through the rest of the process.
- Have a realistic understanding of what it is you have to sell and how valuable it really is – Research, Analyze and understand the opportunity that you have to sell.
- Have a good understanding of why someone would want to buy your business – Research and analyze your industry. Figure out where it’s been and where it’s going. Consider the competitive environment, barriers to entry, threats from new products or services, and the bargaining power of suppliers and customers. Have a realistic view of the attractiveness of your industry to a buyer.
The buyer’s excitement for the future of the business determines how much he or she is willing to pay for it.
- Get your house in order – Give your company a fresh and objective review. Obtain and review a typical buyer’s due diligence request list. This will not only prepare you for the due diligence process,but also will
help you consider your business from a buyer’s perspective. Polish up the things they will value,
and deal with any potential problems.
- Plan to sell a business opportunity, not a pile of assets or a set of financial statements – Identify areas in your business that need improvement, and get to work on them. Find ways that to add to the value of your business, and try to implement them.
- Plan to have multiple enthusiastic buyers for your business.
- Do not get attached to a particular price for your business; plan to let the market give you the best idea of what your business is worth.
The point is to have a good idea of what you want and are willing accept before you get into the market. The more prepared you are, the more likely that you will be able to know a good deal when you see it, and move quickly if the right buyer comes along.