If you have been a business owner for a while, a time may come when you want to sell your company. From retirement to a change in business goals, there are many reasons why an entrepreneur might want to sell.
Get a comprehensive valuation of the business
Before you even begin to think about selling your business, it is important that you understand its value. This business valuation will help determine how much to sell the business for.
The business valuation will also help you understand if the company is worth selling at all or whether it would be better to hold on to it. This process should ideally take place before you appoint a broker to market your firm. It’s a good idea to work with a professional appraiser, as they will be able to provide a more accurate valuation.
Try to boost your sales before you sell a business
If possible, try to increase sales over the six months leading up to selling the business. If your company is doing better than it has historically, then there’s a much higher chance that potential buyers will want to buy when they see its performance figures. This will allow them to have reasonable expectations about future prospects.
The valuation will also be higher if the business has increased its sales figures or earnings, which is beneficial for you as the business owner.
Streamline your financials
Your business’ financial information, including recent business transactions, will be scrutinized by potential buyers during the sale process. It’s advisable that you get your sales and expenses in order before it goes on sale so that there are no discrepancies or surprises for a buyer.
If you have been thinking about selling your business, make sure that you understand its value. Next, boost performance in the months leading up to the sale and streamline your business financials so that those interested in buying the business have a clear picture of its finances.