There are all kinds of reasons why you may have decided that it’s time to sell your business. If you’ve found new opportunities elsewhere, for example, selling up may be a wise decision. Whatever awaits you, the idea of selling your company can be overwhelming, so to help prepare you and to ensure everything runs seamlessly, here are some top tips you need to take into account first.
Establish Your Business’s Value
If your profits have declined dramatically over the last few years or because of the COVID-19 pandemic, the process of selling your company can be more stressful. Whatever your circumstances are, establishing your business’s value is the best place to begin. Once you know your business’s worth, you can decide what action to take next. An accurate business valuation is essential when planning for future growth.
Seek Help
No matter your reason for selling your company, it’s vital that you hire the mandatory legal, financial, business, and tax advising professionals to make sure everything runs as it should. Whether you’ve sold a company before or not, there will be minute details that can present themselves which you weren’t expecting, so seeking financial and legal expertise is a must.
Keep It Quiet
If you run a company where a sale could send your audience or clients into a frenzy, it’s advised to keep the sale quiet until you have found a buyer and finalized the deal. The last thing you want is for your long-term followers to go into panic mode, as they may turn away from the business, which could also turn potential buyers off.
Set a Realistic Asking Price
For companies that are performing well, it can be enticing to set a very high asking price. However, there are lots of factors that buyers will take into consideration when deciding to purchase or not. Even if your revenue is on the up, problems can occur out of nowhere which can have a huge impact on your finances. Put yourself in the buyer’s shoes and look at profits and client relationships before deciding on an asking price.
Get Paperwork Together
Once you’ve decided to sell your business, you need to be prepared for the paperwork that comes with it. Understandably, any potential buyer will want to see your business taxes, financials, as well as existing contracts that are linked to your brand. It’s your job to get everything in order to not only show your professionalism but increase the chances of a quick sale. Getting all your tax and financial records in place, as well as a cash flow report is essential. Now is also the time to tidy up your business’s curb appeal, as the outward appearance of your company can have a huge influence on the buyer’s interest.
If your existing business isn’t making enough money, or you’re ready to move on to bigger and better things, there are lots of things you can do which can prepare you for selling your business and ensure the process runs smoothly.
