You’ve worked hard to build your company, and now you’re looking to move on to the next chapter. Whether you’re ready to retire, it’s time for a life change, or you’re simply looking to capitalize on your investment, selling your business is a major decision. The process can be complex, but here are a few tips to help you get started.
1. The Right Timing
When is the best time to sell your business? When you’re ready to sell. If you sell your business when it is doing well, it helps in securing a buyer faster and getting the value you deserve.
Even if your business isn’t performing at its peak, start preparing for future sale as early as possible–at least a year or two ahead of time. Use the preparation period to improve your finances, business structure, and customer base to make the business more profitable. These improvements will also ease the transition for the buyer and keep the business running smoothly.
2. Housekeeping
It’s time to get your house in order and tie up loose ends. Gather any important documentation, including financial statements, tax returns, contact lists, leases, and so on. You’ll need copies of these documents to distribute to potential buyers.
You’ll also want to make sure the business is presentable. Any areas of the business or equipment that are run down should be upgraded prior to sale. Buyers look for transparency and perform careful due diligence. Getting everything in order beforehand and presenting clean financials can help ensure a smooth transition.
3. Plan An Exit Strategy
Having a solid exit strategy in place guarantees your business will continue to thrive in your absence. Once you’ve decided to exit your business, start transferring some of your responsibilities to new leadership while you finalize your plans. Share the news with your employees, clients, and customers and be prepared to answer any questions.
Potential buyers value businesses with planned exit strategies because it demonstrates a commitment to business vision and goals, and it assures a smooth transition.
4. Choose The Right Business Broker
Business brokers most often have owned successful businesses themselves, giving them the expertise to provide sound guidance and industry knowledge throughout the selling process. Choosing the right broker to sell your business allows you to sell at the maximum valuation you deserve, and to the buyer who is the right fit. You’ve poured time and effort into growing your business–don’t settle for an inexperienced broker to sell it.
5. Handling the Profits
Before spending the profits from the sale, create a plan outlining your financial goals. Determine how you want to invest the money and focus on long-term benefits, such as getting out of debt or saving for retirement.
Your Guide Through The Business Selling Process
Global Business Brokerage is here to guide you through the business selling process. As lifetime entrepreneurs, we know what it takes to be a successful business owner. Using our years of expertise and network connections, we’ll get you to the finish line. Schedule a consultation with us.
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