Selling Your Business: Four Tips
Whether you want to enter another industry or hope to retire, selling a business can cause many emotions. It's not easy to sell something you've worked so hard on, and hoping for a good profit can make you nervous. Use these business-selling tips to feel good about the sale.
Before you even announce that you're selling the company, you need to be confident that it's in prime condition. If you haven't been good at keeping financial records and reports, now is the tim to start. Buyers will want a clear picture of how the business is performing.
Not only that, but now is the time to identify problem areas in the business. If you know that deliveries aren't done as quickly as they should be or that product quality is slipping, now is the time to improve.
Have the Company Valuated
Because of your personal ties to the company you built, you can't be confident that you're pricing the business properly without professional help. A valuation by a business broker can encourage you to be honest about your company's value in today's market and will give you a starting point. A valuation could also give you more things to work on before you seek buyers.
If you're certain a sale will be happening, notify employees as soon as you can. This way you can stop any. Rumors and address whether jobs are secure or not, giving them enough information to make decisions about how to move forward.
Use a Broker
Business brokers work to sell your business and receive a commission based on that. You may want to avoid those costs, but brokers can reach buyers and might be able to command a higher price than you're expecting. They can not only appraise your business but will often have a pool of qualified and pre-screened buyers ready to consider your company. This is important because you don't have to worry that an eager buyer won't receive mortgage approvals or that people who aren't serious are wasting your time.
If you're interested in a quiet sale without much attention, brokers can also maintain your privacy and look out for your interests.
Your business is important to you, even when you sell it. Use this information and let a broker, such as from The Enterprise Group, help you give your company to someone who appreciates what you've done and will pay you well for it.