Successfully selling a business, big or small requires planning. You must take into account several considerations. For some, this planning process can take months, and for others, shorter or longer.
If you are keen on making 2018 the year that you sell your business, here is a look at some of the best practices to have in mind as you prepare for that sale.
Watch Out For The Right Timing
What are the current conditions in your specific market? What do the numbers say about your business?
Selling your business when it is at the peak of its success will bring a good return.
Similarly, timing the sale just right and doing it when the market conditions are ripe for such a sale also guarantees a better return for you. An entrepreneurial mind will look out and wait for when the conditions are just right.
Get Your House In Order
As you prepare for a sale and get ready to receive offers from potential buyers, ensure that your records are all in order. Have your financials ready and make sure that your books are all in order and well up to date. This will not make it easier for potential buyers when it comes to valuation, but, also easier in as far as the transition and consequent administrative functions go.
Are there any issues that may become a challenge for the new owners? Issues touching on Intellectual property rights? Perhaps it is something to do with ownership and shareholders? Be sure to resolve all such issues in preparation for your sale.
Put Together A Team
Don’t go at it alone. You will need key advisors as you prepare for the sale and during the sale.
You should bring on board the following team members:
- experienced business broker
- an investment banker
- a corporate lawyer among other professionals
These professionals will add value to the sales process.
The success of your sale will to a large extent depend on whom you have on your team.
Each of these professionals will bring their expertise and experience to the sale process and make a better success of it than would be had you gone through the process on your own.
A Post-Sale Plan
You will no doubt attract an even better price for your business if you can show potential buyers a plan for sustainable growth and profitability for the business even after the sale.
While the new owners may not necessarily take up the plan as is, or at all, doing so definitely inspires some confidence about the potential of the venture. No one wants to buy a business that may very well end up stagnating or even worse, failing, in the near future.
The new owners may also wish to have you on board as a consultant for a limited period of time as part of the transition process. As an entrepreneur, this is without doubt a move worth considering after a look at the merits, given that it will more than likely up the return you get from such an arrangement.
This year could be the year you make that sale. These insights will no doubt help you get there. Share with friends and family on social media and enjoy the success together.
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