Taking the proper steps to get your business ready for sale can significantly improve the likelihood of a successful sale. For many business owners, the prospect of selling the business after years of pouring every effort into growing the company can be emotional and difficult. That’s a major reason why it pays to structure a plan to prepare for the sale. Remember, it’s crucial to use the same care and patience that is used to grow and sustain a business. What important steps are needed to prepare your company for sale?
- Determine the company’s actual worth. There are a lot of formulas for valuing a business. Buyers may base a purchase offer at least in part on the value of the assets in a business, the cash flow, gross revenues, annual growth and other factors. The ultimate sale price depends on profits. Determining a true market price is crucial.
- Be sure your records are up to date. You want all of your hard work to pay off in the sale, so be sure you have current, detailed records that provide an assessment of the company’s financial position.
- Engage the services of a professional business broker to help you prepare for the sale.
- Always remember that selling a business is a one-time event. Preparation is key to a successful sale.