If you’re thinking about selling a business, it pays to be prepared. Here are some
strategies that can help you make the deal:
• Keep financial reports and tax filings current. Although there may be nothing
wrong with your company, you’ll scare off bidders with tax-reporting extensions
or excessively delayed financial statements. If you’ve had trouble staying current
in the past, upgrade your accounting software or consider switching accounting
• Strive for accuracy. Serious bidders will demand a high level of comfort,
especially about the accuracy of cash-flow statements, accounts-receivable lists,
and the assessed value of fixtures, equipment, and inventory. This is a time when
it may really pay off to invest in audited financial statements.
• Time your deal right. Although it always makes sense to try to sell during a hot
market, it’s even more important to pay attention to what’s going on within your
company and industry. The bottom line: Don’t try to sell during a significant
downturn (unless you absolutely don’t have any other options and are prepared to
accept a rock-bottom price).
• Keep things simple. Anything unusual is bad news when it comes time to sell
your company. So look at your business the way a stranger would, and eliminate
complications before you try to sell.
• Accept reality. If you’re operating in a highly competitive market, there’s no
doubt that your buyer will insist on a non-compete agreement (and perhaps even a
clause in the sales contract that states that you will not try to hire key staffers for
any new business operation at all). If you’re not prepared to make such
concessions, your company probably won’t sell.
• Put a realistic price tag on your company. Receive guidance from your
accountant or a competent Business Broker for an accurate valuation. You can
also research what similar business are currently selling for on web-sites like:
bizbuysell.com, bizquest.com, and others.
Contact us today for a confidential consultation. Call 1-800-BIZ-BROKER