How to prepare your business for sale
Are you looking to sell your business? Here’s how to get it ready for a sale..
Whether you are retiring, looking to cash in or simply looking for a new challenge, you will always want to make sure that you get prepared in order for a smooth transition and to get the maximum possible amount for your company. Keep reading to discover how you can get your business prepared to sell.
Know the value of your business
Valuing a business is not always straightforward and more complex than working out the value of a used car or even a home. This is why you should seek the services of a business broker that will be able to establish what a reasonable price is for the business, negotiate on your behalf and suggest ways to maximise the value.
Ensure your clients and accounts are in order
Nobody will want to buy a company that is not in order and has problems that need resolving straight away. Therefore, it is important to get your clients and accounts in order so that there are no overdue payments that need settling or negotiations up in the air when you are looking to change hands. You also need to get all of your financial documentation and forecasts prepared – these will be key for showing to potential buyers that the company is in good financial health and can be successful moving forward.
Review the structure
Selling a business is not simply a case of handing over the front door keys to a potential buyer and often restructuring is needed, especially if you have a partnership or need to reorganise the share structure. This can be done with help from restructuring professionals that will help to get the company into the best possible structure prior to a sale and allow for a seamless transition.
Keep staff informed
Selling a business can be a troubling time for employees and not just because you will be leaving. This is why it is important to keep your staff informed on any developments and give them plenty of warning that you are planning to sell the business.
Plan an efficient time to walk away
Following on from this, you should also plan your exit so that it is an efficient time for all stakeholders. You should plan your exit well in advance and do all that you can to get the company in good health before leaving so that the move can be seen as a positive one and you know that you are leaving the business in a good position.
These are the key steps to take when getting ready to sell your business. No matter your reason for selling, you need to take your time and get your ducks in a row so that you can get the maximum amount but also allow for a smooth transition so that your business can find continued success after your departure.