Are you thinking about selling your business? This is a major decision and not one to take lightly, so there are always a few factors that you need to consider before moving forward and it is always a good idea to put yourself in a buyer’s shoes in order to make your business as appealing as possible.
Why Are You Selling?
First, you need to consider why you are selling as this is something that any potential buyer will want to know. There are many reasons why this might be and you should always be honest. The most common reasons are:
- Retiring
- Personal issues
- Wanting a new challenge
- Too much work
Timing
It is also important to consider the timing of the sale and you should give yourself as much time as possible before looking for sellers. This is because you will want to get the business in as healthy position as possible in order to attract buyers and maximise value. It is also important so that you can give each stage of the sale as much time and attention as is necessary – it is a good idea to speak with a “sell my business” specialist to guide you through each step of the way.
Increase Sales & Profits
If possible, you should spend some time trying to increase sales and profits before looking for a seller. Improving the business and making it more profitable will make it much easier to sell and allow you to command a higher fee for the sale, plus you will also have peace of mind knowing that you are leaving the company in a good position.
Prepare Financial Statements
Every buyer will want to see financial statements from at least the last three years, so you should always have these ready to hand over when meeting with potential buyers. You should also be prepared to talk through these and discuss and projected future earnings so that they can get an idea of what the potential of the company is.
Get a Business Valuation
One of the hardest things to do is to establish a fair and reasonable value for your business. This is why it is best simply to leave this to the experts and to get a professional business valuation that can act as a starting point for any negotiations.
Selling your business is a major decision and you need to make sure that you get it right, so these are the main areas to focus on that should help to make it a simple process.
