Preparing your business for sale

Preparing your business for sale: 

"The further ahead you think, the more opportunities you have to consolidate and streamline your business for the sale.

Planning ahead can not only allow you to sell more quickly and easily, but even to make more money on the deal.

Do the housework

If you were selling your house, you'd make an effort to get it clean and tidy before showing it to prospective buyers. Treat your business the same way. Make sure your records and accounts are in order, and your filing system is easy to understand. 

It should go without saying that you need to ensure your business is above board, with any outstanding debts or legal battles either settled before the sale or brought to the attention of the buyer in good time.

Maximise profits

Now that everything is in order, it's time to make your business as appealing a prospect as possible. This might mean switching the focus of your business from long term growth to short term profits to show a healthy turnover, or it could mean showcasing the strategies that mean greater profits in the long run. Your accountant or a specialist business broker can advise you on the best option for your business and sector. 

What's it worth?

Even when you know your business inside out, it can be difficult to assess its value in the current market. However, you need a reasonable idea of the initial asking price you should set, and a minimum below which you won't sell. There are many ways to evaluate the worth of your business, from totting up the value of physical assets to comparison with businesses of a similar size and type. Consider hiring an expert to make the valuation for you. A professional with the right connections can also help you find a buyer and ensure that negotiations go swiftly and smoothly.

Seize the day

If you're not under pressure to sell, it's worth waiting for the right moment. Market sectors can be temporarily buoyed or depressed by the global economy, or an unexpected trend can suddenly make your product or service hot property.

Alternatively, if you suspect that the bubble is about to burst for your sector, plan to get out before it does.

Plan your exit strategy

The chances are you'll still have an interest in your business after you've sold it, whether you're a shareholder or you just don't want to see all your hard work come to nothing. Make sure things don't go to rack and ruin after you've left by providing for the future of your business.

If you are planning to make a colleague your successor, start training them now. Share information and deal with any questions they may have. If you will be available as a consultant after the sale, make this clear. Your knowledge and expertise will be valuable to the buyer, but try not to get upset if they override your advice. After all, it's not your baby any more.

For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.