While brokerage professionals are working to sell your business, it’s important for you to keep your daily operations running as smoothly as possible. Sellers often make the common mistake of becoming distracted during the selling process and allow things to fall by the waist side. You’ll want to make sure everything remains the same, as prospective buyers will otherwise start to become nervous. Operating hours, inventory levels, and tasks such as keeping the premises in prime condition should remain unchanged. If any changes like revenue or sales decrease, that will raise a red flag for buyers.
Business brokers , M&A advisors, Attorneys and CPAs – anyone professional who may be involved during the sales process – will help tremendously with various details and events. This way, you can focus your energy on running your business, and they will continue to assist with the process from beginning to end.
Get Professional Advice on Pricing
You may have a ballpark figure of what your business is worth and an estimated amount you expect it to sell for. However, the truth is that you will only receive what the market will allow. Always obtain a professional valuation before providing a listing price. Over pricing the value of your business will certainly derail the process and potentially halt it all together. You want to strive towards successful results, not set backs.
Keep Things Confidential
Confidentiality will be an extremely important piece of the puzzle during this process, especially until your sales transaction has fully concluded. If your vendors and employees know that you are selling, it could lead to circumstances that are detrimental to the value of your business. Employees may begin to pick up on what is going on behind the scenes and opt to seek employment elsewhere. Similarly, vendors may catch wind of what is happening and choose to terminate their contracts if word were to get out.
Decide On Your Strategies
Think about how willing are you to stay for a designated period of time after your business sells. Weighing this decision tends to help increase the amount you receive for your business, as many buyers will hold you as a valuable asset as a reduction in their risk and often increase their offer. Another thing to consider is offering seller financing. Similar to sticking around, buyers will view financing as a sign that you believe in the future success of the business.
Prepare in Advance
It’s always best to prepare when you are not experiencing external pressures. Unfortunately life is unpredictable and any event could cause you to sell at an unexpected time. Factors to consider are making sure, years in advance, that your bookkeeping and paperwork is kept up with. This would include organizing documents or handling any litigations and environmental issues. As mentioned above, selling a business can be highly distracting for business owners.
A prime reason for business owners is to start talking to an M&A advisor or a business broker a few years in advance. That way they can make sure everything is optimized for positive results.
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