How to Get Ready to Sell Your Business
You may have heard the advice, “the best time to prepare to sell is when you start your business.” While this statement is far from realistic for most business owners and may even sound humorous, it does contain a certain amount of wisdom. Preparation cannot be undervalued when it comes to getting the best outcomes selling your business.
It’s never too early to begin pondering the answers to these questions. No matter where you are in the journey of running your business, we encourage you to prepare as much as you can. With that in mind, let’s look at some considerations and decisions you’ll need to make when you do get ready to sell.
If you are involved in the day-to-day running of your business, logic will dictate that you’re pretty busy and don’t have time to dedicate much time to sell your business. The good news is that this is one area where a Business Broker or M&A Advisor will make all of the difference.
Brokerage professionals will perform various tasks from start to finish, including negotiating and interacting with prospective buyers on your behalf. These professionals will be able to work on many things independently, and, if it is your preference, they can notify you only about the most relevant details of the transaction. On the other hand, you may want to be very involved in selling. If that is the case, let your brokerage professional know.
Regardless of how involved you are with the business and the sales process, you will want to ensure that things stay as consistent as possible during the sales phase. The reason for this is that buyers will want to see consistency. Any change in operations or revenue earned could be a red flag for a buyer.
Another item that is worth thinking about ahead of time is confidentiality. Professional Business Brokers and M&A Advisors will put the utmost importance on privacy. When confidentiality isn’t taken seriously, leaks are widespread. These could quickly interfere with the sale, whether due to a client/staff looking elsewhere or competitors taking advantage of the situation. Your brokerage professional will advise you of the best policies and precautions for preventing leaks and only reveal details about your business to prospective buyers who have been carefully vetted.
If you have partners in your business, it makes sense to bring up the discussion of a future sale well in advance. This will allow you to get on the same page about your plans for handling things when the time comes. In the case that the date of the sale ends up being before you expect it to be, it will be beneficial to have already addressed these issues.
Copyright: Business Brokerage Press, Inc.
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