Introduction: Maximising the Sale of Your Company

By t.co/OlvWGVEFVM
About: Hi I am Tony Thomas a freelance expert blogger. I love to write about all niches and innovate new ideas for Guest blogging.

The decision has been made, time to sell the business. How to sell your business is the next step in the process. Entrepreneurs sell businesses for numerous reasons from retirement to daily boredom with the company. The reasons will depend on each individual situation. The timing to sell will vary from person to person.

Timing

Numerous business owners will make the decision to sell when the company is on the decline. The opposite should take place; sell the business during a good fiscal year. If possible plan for the sale prior to putting the company on the market, an attractive overall package will yield a higher sale.

  1. Sell when the profits are high and continue to generate at an increasing rate.
  2. The client base or customer base is consistent and strong.
  3. The business has a strong presence within the community. Reputation will aid in selling at a profit.
  4. Take an overall look at the market, will the company bring the asking price. The economy should be taking into consideration before selling.

Value

The worth of the business is an important step to consider while preparing to sell. Having a professional appraiser should be utilised. An appraiser can determine how much each part of the business is worth. Depending on the situation, an appraiser can help in determining property value, building estimate, equipment, goods on hand and any other information that will add value to the business.

Documents

Preparing documents ahead of time will help during the time of sale. By being prepared the transaction can take place in a smooth manner.

  1. Financial statements for five years
  2. Tax returns
  3. List of all equipment values and depreciation rate.
  4. Create a list of local suppliers.
  5. Mortgage or lease information on the building or equipment.

Potential Buyers

Before putting the business on the market, get a feel for potential buyers from those close to the business. A supplier or a customer may be one of the best prospects for selling the business. Finding someone familiar with the business will make an easier sale. If no one comes forward, then the time will be to put the business on the market for the entire public to have access.

Best Foot Forward

The smallest of details can help in the aid of selling the business. Clean up both the interior and exterior of the company. Small fixes may cost little amounts of money but could yield a larger sale.

  1. A fresh coat of paint can make the business appear clean and fresh. Fix any imperfections in the way.
  2. A good cleaning, mop and wax floors. Clean all areas of the business especially the office. An appearance of neat and tidy surroundings will help during the sale.
  3. Clean up the grounds. Free the area from any litter. If selling during a snow season, make certain the area is plowed and shoveled properly. Appearances go a long way during presentation to a potential buyer.

Negotiation

Be ready for negotiation. Extra time may be spent on getting the right deal for the company and the buyer. Extra considerations may have to be considered. Often a new buyer will ask the owner to stay on with the company for six months in a consulting capacity. The selling of the business will not happen overnight. Transferring the company to the new owners can be time consuming.

A professional can yield the best results by maximizing the value of the business and preparing for the overall exit strategy. KBS Corporate can assist the seller with all the exit strategies in a professional and timely manner.