ExecutiveChronicles | Selling Your Business? Don’t Forget These Essential Points | Have you decided to sell your business? There are many reasons why you may have come to that decision. You could be deciding to explore a different career path, for example, or you might be gearing up for a well-deserved retirement.
Whatever the reason, it is important you go the right way when selling your company. You want the process to be as seamless as possible, and you want to receive a fair price for a business that you have built from the ground up.
With that in mind, here are some essential points to remember when selling your business.
Get started straight away
When you have made the decision to sell your business, it’s vital you kick-start the process right away. In fact, it is advised you try and do this at least a year ahead of time.
There are various reasons for starting so early. Firstly, it allows you to get your business in better shape. You can improve its structure, financial records, and customer base – all of which ensure your business is more attractive to prospective buyers.
Another reason is that the transition of the business to the buyer is easier. This means your business can continue to run smoothly, even if plenty of change is occurring in the background.
It goes without saying, but you need to get your business valued before you put it up for sale. A valuation allows you to learn how much your business is worth – no guessing involved – to land a sale at a fair price.
Aside from learning how much your business is truly worth, your asking price instantly gains credibility if the valuation is provided by an independent appraiser.
Bring in a financial advisor
With such a large undertaking where a lot of money is being exchanged, it is highly advised you bring in expert help through a financial advisor.
When selecting a financial advisor, it is best to go local. Say your business is based in Stuart, Florida, and you would want to work with a financial advisor in Stuart, FL. By keeping it in the area, not only is it easy to meet with your advisor, but they will also be well-versed in all local laws and regulations.
As for the work done by a financial advisor, they can help document, organize, and simplify your business finances. This includes structuring a plan that is most likely to secure the best sale result.
Finding the Right Buyer
As mentioned, it can take one or even two years (or more) before your business is sold. This is because finding the right buyer is not easy. A company isn’t cheap or easy to purchase, which limits the number of potential buyers out there.
The first step is advertising your business sale far and wide. If possible, you should try and have a few potential buyers lined up – this helps if an initial deal collapses. You also shouldn’t be dismissive of negotiating with a buyer, although never stray away from what is a fair price.