Business Brain: Selling a business means facing up to 'hard realities' - Independent.ie

The key to successfully selling your business starts with advanced preparation. By taking a cold, hard look at the historical financial performance and disposal 'readiness' of the business, prospective sellers can maximise economic return.

Therefore, it is imperative that the preparation phase begins well in advance of the planned disposal (For example, 18 months).

It is essential that the seller views the business through the eyes of a potential buyer. Owners may lack the dispassionate ability to perform an objective review of the overall health and value of the business and any emotional attachment needs to be tempered by hard realities.

As a starting point, you should consider whether the underlying financial records present a comprehensive picture of the overall value of your business.

You may be compliant from an audited accounts point of view, but it is important to take a step back and consider whether there are other intrinsic areas of your business that add value, such as key supplier and customer relationships.

Conversely, it is crucial to identify whether there are any aspects of your business that are underperforming or loss-making. Tough decisions must be made early so that appropriate and timely corrective action can be taken.

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Business Brain: Selling a business means facing up to 'hard realities' - Independent.ie:

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.