SEVEN STEPS TO TAKE IF YOU’RE SELLING YOUR BUSINESS Selling your business can will be an emotional and life-changing event. Yet after years of hard work, untiring commitment, and nurturing your business, it might be time to sell. If so, how should you do it? • For starters, be realistic. Although you might think your business is worth millions, hire a seasoned appraiser to determine the condition and value of your business. You’ll have a benchmark for determining whether the right time to sell is now. The appraiser also might suggest ways to increase the value of your business before you sell. • Second, talk with your accountant and attorney. They know you and your business and can give insight and guidance throughout this process. They understand the legal and tax implications and might recommend a good business broker. There are highly effective strategies that can minimize the tax burden. • Third, think like the buyer. Anticipate the information potential buyers will want and the questions they might ask. Prepare a package that informs and impresses. • Fourth, be flexible. Are you willing to assist the buyer with partial financing? Are you prepared to assist in the business for a time to insure a smooth transition? • Fifth, spruce things up. Just as an immaculate house will sell more quickly than one in need of repairs, it’s the same for a business. Do you have your systems documented so that operations flow seamlessly? A buyer will pay more for an operation that is self-sustaining and that basically runs itself. Wouldn’t you? • Sixth, Begin your planning well in advance and think ahead. Begin with the end in mind. Give yourself plenty of time to implement change aimed at the most favorable outcome. • Seventh, sleep on it. What will you do with your time after the business is gone? Will you retire or move on to another business venture? Think through your decision before you commit to selling the business. Make sure it feels right from both an emotional and financial perspective. Selling your business calls for careful planning. For assistance with the many important details, give us a call. We can help make sure you do it right.
Posted on: Fri, 12 Jul 2013 15:36:25 +0000