Hints on How to Sell Your Business

Selling a business can be a complicated process, especially if you have never gone through it before.  To help you gain the best deal possible we have a few steps or hints that you may want to follow in order to sell the business.

1. Value: Do you know the value of your business?  You may have an idea of what you hope to get out of the business sale, but is this a realistic value?  You will need to hire an appraiser for your business, much like you would your home.  This appraiser will examine your books, earning potential, previous history, and assets.  From this they can derive a clear valuation of your business.  It is then up to you to decide if you want to try to get a little more for the business than what it was valued at.  The drawback to trying to get a little more is that most potential buyers will hire their own team of experts. 
2. Advertising: Where and when to advertise is an important concept.  First advertising through a business transfer agent online and in your local area are two methods.  Second you have to consider your employees. 
3. Should Employees Know: This goes to our second method of advertising- do you want your employees to know you are selling the business?  If the answer is no then you will have to plan your advertising accordingly and keep it quiet.  Usually you do not want the employees to know because they may begin to panic, and you may lose some of the best employees because they fear they will lose their job with the new owner. 
4. Are your books in order: You need to make sure your books are in order. The new buyer is going to want to look at your accounts and other documentation the business has.  To get the best value for your business these documents need to be clear and complete. 
5. Settle Disputes: Any disputes you have must be settled. 
6. Finding Advisors: Advisors are imperative to the business sale whether you go with a business transfer agent or solicitor.  You should check the credentials, references, and history of the advisors you are considering hiring.  Use the internet to find out about the person.  There is a plethora of information online regarding businesses and the people that run them.  Let this information work for you. 
7. Getting the right price: After you prepare your business for sale and know the value you can get you still have some work to do.  There are methods to getting the price you want out of the business.  The above steps will help.  Still, there is one more thing you can do.  You can choose to sell at the right time. In an economic downturn your business may not be showing enough strength.  You have to sell your business when you are in an upswing.  Remember, sell when you are in the black and growth potential is there.