Selling a small business requires a solid plan and will take a considerable amount of time to complete. A business sale is a complex task that should be planned well in advance. There are many things to consider when organizing the sale of a company.
Position a Company for Acquisition
Start preparing years before you want to sell — ideally, at least a year before the sale. This will give you enough time to make sure that all of the financial records are up to date and accurate and that any internal structures are well organized.
Potential buyers need be able to easily request any necessary documents. Any relevant contracts and paperwork should be available. In short, everything needs to be as transparent and organized as possible.
The type of products and services you offer as well as your target demographic, strategies, goals, etc. should be presented clearly and be easy to understand.
Increase Your Sales
To make your business even more appealing, work on generating as much profit as possible in the years before the sale. Increase your marketing strategies, refine your products, hire skilled employees, or do anything else you think could help boost your sales.
Pick the Right Time
Determine if it is the right time to sell your business and be realistic when it comes to the value and price you can ask for. The current market situation and the shape of your business may determine if it is a good time to prepare for a sale.
Plan Your Exit Strategy
A thoroughly planned exit strategy will also allow you to ask for a better price. “Executing a well-thought-out exit strategy can increase your sale price, while ensuring that the business continues to thrive after you’ve left. This can also be called succession planning”, according to the software provider Xero.
Ensure a Smooth Transition
Train your staff to make the transition smoother, and make sure that everything that the new management needs is in place.
Negotiating the Sale
Selling a business can be highly lucrative, if done right. If you position yourself well, you stand to gain enormously. Carefully decide if it would be more beneficial to hire a broker or negotiate a price yourself. Hiring a broker can help make the sale run much more smoothly. Unless you are a highly experienced and confident negotiator, this might be your best option.
Selling a business is best done by working with experts who can guide you through the process and explain certain details that you might not be aware of. Experienced and skilled specialists as well as other business owners who can give you advice can be incredibly valuable during this time.
