Do you know about 10,312 businesses were sold in 2018?
Selling your business is a multi-phase process, and proper planning is required to maximize your capital gains. It’s a confusing and emotional process with various decisions to make.
Having a support team of accountants, advocates, and business brokers is one of the ways to ensure you have proper guidance.
For the best outcome, here are 5 tips for conducting a business sale.
1. Prepare for It
One of the vital things you require to know when selling a business is not to go through the process blindfolded. You have invested a lot in your company, and it can be devastating to see everything go to waste because of a simple mistake.
Familiarize yourself with how to sell a company, more so what’s required of you and rules, you to follow. You are prone to so many mistakes if you fail to prepare for the sale.
For example, a breach of confidentiality can cause disasters to your sale. Familiarize with simple rules like this one as they derail transactions instantly.
2. Keep Your House In Order
Once you decided to sell your company, make sure you tie up loose ends. Follow through with all your promises, and ensure there are no defaults or late payments.
In case you had promised shares to your manager, it’s time to honor your promise.
Also, if you had investors, let them participate in the decision-making process. You will be surprised at how investors may have connections that could land you on a better deal.
3. Determine Your Selling Price
Valuating your business can be complicated, as it involves revenue, debt, responsibilities, and expenses your business may have acquired over the years.
You can use various methods to determine your business value, including the asset, market, and income valuation methods. The appropriate method for your business depends on your business structure and goals.
4. Obtain Legal And Financial Expertise
Irrespective of why you are selling the business, hiring tax, financial, and business-advising professionals is important. Hiring experts when selling your company ensures the process goes on smoothly.
5. Hire A Business Broker
Professional business brokers help provide your business market visibility, increasing chances of finding a better fit. Brokers have well-established networks to link you to buyers you would not have discovered on your own.
A professional broker familiar with how to sell business similar to yours can also help you set a realistic price.
Get a Good Deal by Learning the Tips for Conducting a Business Sale
Conducting a business sale is a complex process, but you stand in a better position to navigate well with the right guidance and support system. Make sure you plan early and package your business well to make it look attractive to potential buyers.
You don’t want to lose a promising lead over a few broken shelves. Set everything in order and have your business broker handle the rest.
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