Selling your business can be an intimidating venture. You want the sale to go successfully and to accurately reflect the business’ value—after all, you’ve likely spent a lot of time and money getting your business to where it is today. In order to get the best deal possible, you’ll have to do a fair amount of planning. Before you seal the deal, make sure to check out our list of some important things to do before selling your business.
Determine the value of your business
Whether you have a small business or a medical practice, it’s important to determine your business’ value before you attempt to sell. Doing so will help potential purchasers determine if they would like to pursue the opportunity of buying your business or not. Coming up with a ballpark figure of how much a business is worth, however, can be complicated. As such, we suggest having your business properly evaluated to determine its true value.
Refine your practices
A potential buyer will want to make sure your business is running smoothly before they purchase it. As such, potential buyers will likely scrutinize all your contracts, processes, and assets in detail. Therefore, making sure your contracts are as clear as possible and that your processes are refined is essential.
Because of all the time, energy, and money you’ve put into building your business, addressing potential flaws can be difficult. You may not want to admit that the business you’ve nurtured like a child could have possibly any flaws. However, making honest assessments about your business’ potential weaknesses is essential to a successful sale. After addressing the vulnerabilities of your business, make potential buyer aware of any issues before they discover them on their own. Doing so will allow you to control how the issues are disclosed to the buyer and help cover your interests.
It’s common for a management team to get so invested in selling their business that they forget to make sure the business continues to run effectively. This switch of focus can lead to poor financial results in the months leading up to a sale. As a result, the potential buyer may ask for a concession because the results were lower than expected, which may impact your ability to sell. As such, you should come up with a plan that ensures that enough people are managing the business while others work on sealing the deal.