How to prepare your business for sale
Selling your business can be a great move, whether it’s always been in your business plan or has become a new development. Preparing your business for sale can be a lengthy process but can be incredibly rewarding, and gives you the best chance of a successful sale.
If you’re considering selling your business, it’s wise to start preparing sooner rather than later. In our latest blog, we offer some helpful guidance on how to prepare your business for sale. We will look at:
- The right time to sell your business
- Is a successful sale realistic?
- Getting a valuation
The right time to sell your business
Part of preparing your business for sale is understanding when you are planning on selling it. Do you want to do it sooner rather than later, or is it something you will consider 5 years down the line from now?
Either way, having an exit plan in place is important, so that when the time comes to sell, you are ready. Selling at the right time can have a huge impact on the price you get for your business, so planning ahead means you’re able to pick the best time.
Consider selling when your business is doing well; prospective buyers will see a successful business and will be much more interested.
Is a successful sale realistic?
In preparing to sell your business, you should be realistic about your prospects. After all, you can only sell your business if it’s probable that someone will actually want to buy it. Look for reasons why someone would want to pay to take your business over; if you can do this quite easily, your business will probably make a good acquisition!
Ask yourself; is the business healthy? Is the industry in a good place? Look at the organisation of the business and whether it’s an attractive prospect for a potential buyer.
If the answer to any of these questions is no, then you need to make time to prepare your business further before selling.
Getting a valuation
It’s important to understand how much your business is worth, as this will impact the selling price. It will also give you a good idea of what financial gain you will come out of the sale with, which can impact your future plans.
Getting a valuation can provide a bigger picture of selling your business and may help you through the selling process in regard to negotiations. There are a number of ways you can value a business, and it’s helpful to get an expert in to carry this out for you, just like Bizdaq.
While preparing to sell your business, it’s key that you are still running your company efficiently. It’s important to keep financial records organised and ready to view, as well as any contracts and other paperwork that is crucial to the everyday running of the business.
A potential buyer will want to see things like this, so having them filed correctly can be a huge help later down the line. This kind of transparency can be a huge benefit for the success of the sale.
Posted on October 14, 2019 | prepare you, sell my business, selling a business