Preparing to sell your business takes time and commitment. It is important to prepare as much as possible no matter where you are in the journey of running your business. In this article we will take a look at some decisions and considerations that you will need to make when you get ready to sell.
Commitment
It takes commitment when preparing to sell your business. As a Seller you are probably involved in the day-to-day running of your business and don’t have a lot of time to dedicate towards the process of selling your business. It takes time to collect all the documentation needed to assemble the required Offering Memorandum. The Memorandum must be as complete as possible. Some of the sections of the Memorandum include the company’s financials, the company’s competitive advantages, the company’s growth potential, and an analysis of the competition.
The seller must provide the completed memorandum to both the intermediary and potential buyer for review. Sellers are faced with the challenge of keeping their business thriving during this time.
Consistency
While you are in the sales process you will want to ensure that things stay as consistent as possible. Buyers will want to see consistency. Any change in operations or revenue earned could turn out to be a red flag for a buyer.
Confidentiality
Another thing to think about ahead of time is confidentiality. Leaks are very common when confidentiality isn’t taken seriously. This could quickly interfere with the sale. A brokerage professional will advise you of the precautions and policies that work best when it comes to preventing leaks. They will only reveal details about your business to prospective buyers who have been carefully vetted.
Selling a business is a complex process. Download our FREE Seller’s Guide to help you prepare your company to sell. EBIT’s experienced staff can help you through the process of selling your business.