Selling a business is a tough mission, accompanied by many problems and obstacles. If you want to get through the process without spending too much time, effort, and nerves, you have to take the right preparation steps.
If you are sure that you are ready to sell the company, then these 7 tips on selling your business successfully can help you get the best price and finalize the sale as soon as possible.
Before putting your business up for sale, you need to research the subject thoroughly. The selling process involves numerous nuances, many of which are far from being obvious. Find out how the process usually works, which documents are needed, and which agreements have to be signed.
Remember, no matter how much time you spend on preparations, you may still face unexpected problems along the way. You have to be emotionally ready and flexible enough to react to them without losing your cool.
The more you know about selling a business, the harder it will be to knock you sideways.
Even though you can sell a business on your own, it’s better to ask for help. Most likely, you have other important things to do than studying the market, looking for potential buyers, reading hundreds of documents, etc.
The best way to delegate your selling task is to hire a business broker. If you manage to find the right one, the sales process can turn from a painful mission into an enjoyable walk in the park. Well, not really. But a business broker can take some of the load off your shoulders.
You can also ask for help from your employees. It doesn’t mean you have to tell everyone you are selling your business. Ask the people you trust the most for help. Make sure they don’t lose anything due to the sale. Otherwise, you may not get sincere assistance.
Look at selling a business as you would at selling a house. How high of a price can you set on a home with dirty windows, a lawn, which hasn’t been mowed in months, and chipped paint? Before any sale, you have to tidy up. The same goes for the business.
Make sure there are no financial loose ends and unsettled business with other companies. A buyer is likely to ask for financial statements and other documents that show the condition of the company. Make sure all documents appear impeccable.
Selling a business always involves numerous legal issues. You are unlikely to complete the process without proper legal advice. Do your research to find the best legal advisors for selling a business in your area.
According to an Orlando business broker Cress V. Diglio, a good legal team is half the battle. Ask your business broker to recommend a legal team. Ideally, your trusted legal advisor should be part of it.
A good business should cost a lot, right? Not always. Setting too high of a price can slow down the selling process or stop it altogether. The price of the business doesn’t just depend on the company’s profits and size. It depends on the current state of the market.
It’s vital to set a realistic price for your business. If you hire a business broker, you can get well-researched advice about the real cost of your company. If you are selling a business on your own, take the time to study the market.
If you’ve decided to sell your business, you want to do it fast. However, selling a company is not the same as selling a car. The process could take up to a year or even longer. Don’t rush into a deal if you aren’t at least 75% sure of its quality.
Take your time to set the right price, do research, study the buyers, go through agreements, and the like. Hurrying a sale is highly likely to lead to a disaster.
When it comes to selling a business, you need to keep it quiet for as long as possible. News about the upcoming sale could lead to panic among your employees, clients, and customers. This could affect the state of your company and force you to lower the price.
Share the information with a limited number of people, such as your business broker, legal team, and assistants. You can even have them sign a non-disclosure agreement.
Selling a business is not a quick and easy process. Be ready to spend numerous resources to finalize the deal. Take advantage of the above 7 tips on selling your business successfully to make the sale easier. Throw a little intuition into the mix. Don’t sell unless you are sure you are doing the right thing.
By Maria Victoria MacAraig – Contributor
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