Selling a business is a complicated process that, if improperly prepared for, can be very difficult to sway in your favor. Before selling your business, it’s important to be able to answer these questions:
- Are you and your business ‘sale ready’? This includes the state of your books, equipment, accounts and position in the market.
- What is your business worth? Having a professional valuation done is imperative before heading to market.
- How healthy is your industry? If it’s in the middle of a transition or a downturn, it may be best to wait it out before listing your company.
- Who is your buyer? Work with your business broker or advisor to create a clear buyer persona so that your marketing team can target the right buyers and help you achieve the optimal outcome of your sale.
- How long will it take? Selling a business is a lengthy process and it’s important to be realistic about your timelines and the effect they will have on your bottom line.
- How will I get paid? There are many ways to complete the transaction, consulting with your broker and considering both your needs and the buyer’s needs will bring you to this answer.