Selling A Business

How you can sell a business

Savvy sellers of small businesses don’t just rely on prospective buyers to conduct investigations. They proactively prepare by assessing their business’s competitive standing in the market, determining a reasonable asking price, and evaluating the suitability of potential buyers well in advance of negotiations.

To sell a business successfully, sellers must engage in meticulous planning. This includes tasks such as tidying up financial records, refreshing the appearance of a physical store, and modernizing outdated operational systems. Sellers may also consider bolstering marketing efforts to increase sales and secure a more favorable asking price.

Before Selling a Business, consider these steps first:

Here are six tips for small business owners who are planning to sell their business:

• Get a third-party valuation to determine the value of your company. The review typically considers everything from sales to receivables, inventories, and other assets to identify business threats and opportunities that define value.
• Clean up your small business financials by working with an accountant to present clean financial statements and business tax returns dating back at least three years and ensuring that all income is accounted for.
• Prepare your exit strategy in advance to avoid unexpected factors that may force you to sell. Consider having a trusted employee take over the business if you plan to sell.
• Boost your sales by diversifying your customer base, pushing out bloated inventories, and getting your operating systems up to date.
• Find a business broker to help you with the sale. The broker often performs the business valuation, prepares a prospectus, and taps into a large network to locate buyers.
• Pre-qualify your buyers and ensure they fit into the company culture. In most deals, banks will also want the sellers to provide a portion of financing for the transaction.