4 Steps To Take To Prepare Your Business To Sell
Preparing To Sell Your Business
Business owners sell their company for a variety of reasons and go through different processes to prepare their business for sale. Some business owners plan their exit strategy from the start of their business. Other business owners need to prepare themselves emotionally to sell their business. Creating an exit strategy is the first step you should take.
1. Create A Business Exit Plan
A business exit plan is simply a strategy on how to best leave your business. By researching and viewing different options on how to leave you can come up with a simple and straightforward plan. A business broker can also advise you on how other business owners have left their companies.
2. Organize Your Finances & Financial History
Getting your finances organized and all of your financial history is an important step in preparing to sell your business. If someone is interested in buying your business and you present all of your financial history, they are more likely to pay full price for your business because of the apparent transparency that you are presenting. Typically to perform a business valuation three years of financial history will be needed.
While you are going over your business’s tax and financial history take an inventory of any debt your business has and try to pay it off. You can sell a business with debt, but it is much more difficult.
3. Get A Business Valuation
Getting a business valuation sets you on the fast track to selling your company. Once you know the value of your business you can more effectively navigate the sale of your business and negotiating the price of your business. A business broker will help you determine how much your business is worth, and can be a valuable asset when negotiating the sale of your business.
4. Increase Your Business’s Annual Revenue
Something that can be done before you sell your business is taking the time to increase your business’s value and annual revenue. This can be done by increased marketing and sales efforts or by investing internally in your business. The more your business grows the more buyers are willing to pay for your company.
Contact Us To Sell Your Business
Contact VNB Business Brokers to sell your company. Call us today at 877-264-7355 for a free, no-obligation consultation. Our business brokerage firm is 100% confidential in our consultation. Start the process of selling your business with us.