Selling a business is not easy and if you are planning to sell your business, then it is important that you start planning early as it usually takes more than 9-10 months for selling a business. Having an exit strategy helps but the ideal time would be starting the preparation 2 years before the sell date. There are many things that you do so that you get a good price for your business.
You can start by making your business perform well. Start by assessing your cash flow, expenditure and taxes and check all the other business elements and operations to see whether they are running optimally. It is always wise to sell your business when it is doing well and is on its upswing, if you are considering selling it off. Like for example, people who are into seasonal business should try and sell it soon after the season begins. This is possible only when you plan ahead and you would run into any loss. Take the advice of business brokers and your accountants if required as they can handle the sale better than you and you can focus on running your business instead. Motivate and impress the buyers about buying your business. While it is true that a buyer would only a buy your business, if it has a proven track record. But the future also matters and hence, make use your own intimate business knowledge to point out to the new owners how to expand the business.
Before you think of placing you business for sale, there are many things that you need to know. The papers that should be in perfect shape before you approach a buyer or put business for sale in the market are:
• Profit and loss statements of the past few years
• Tax return details of the business
• The lease documents and everything related it.
• Loan documents that are related to your business.
• Copies of equipment leases. List of equipments and fixtures
• Copies of franchisee agreement (if your business is one)
• List of inventory you have.
• Copies of legal documents that are related to your business.
• Profit and loss statements of the past few years
• Tax return details of the business
• The lease documents and everything related it.
• Loan documents that are related to your business.
• Copies of equipment leases. List of equipments and fixtures
• Copies of franchisee agreement (if your business is one)
• List of inventory you have.
• Copies of legal documents that are related to your business.
If you are small business owner, then gathering all the above items would take some time and after you have finished gathering all these, update all the information and complete the blanks. Make sure that you offer correct and updated information and have a good look at them. Prospective buyers would definitely review the details offered by you and would want to see the income and expenses as well. They would want to know whether your business is making any profits and most buyers would not buy a business that is running in losses. Every few buyers might also be ready to take a risk. Look for someone who is serious and when you look for buyers, try and know why they want to purchase your business. Many people buy a business after their retirement or due to job dissatisfaction as well.
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