Are you Ready To Exit?

Every business owner will need to think about whether or not they are ready to exit. You do not want to wait until the last minute to prepare to sell your business. There are way too many details in the process to wait until the 11th hour. Here are some key questions to ask yourself.

What Is The Value Of The Business?

You will need to determine the actual value of your business. What you think your business is worth and what the actual market value is may be two very different values.

It is very important that you work with a business broker early in the process. An experienced broker knows how to determine a price that will generate interest and seem fair. Remember, it will be the marketplace that determines the value of your business.

Do You Really Want To Sell?

Consider whether or not you really want to sell your business. Many business owners begin the selling process and then realize they are not ready to sell. You may not be emotionally or financially ready to sell.

Do You Have Your Company Information Ready?

Any serious prospective buyer will want a lot of information regarding your company. Potential buyers will want to see three years of profit and loss statements as well as federal income tax returns for the business. Other important documents include leases, lists of loans against the business, and non-compete contracts. You should also have an approximate amount of inventory on hand, a list of items that aren’t included in the sale, copies of equipment leases, and a list of fixtures and equipment. This information should be organized and ready to present at a moment’s notice.

Working with professionals is a smart move. Selling a business is a complex process. EBIT’s experienced staff can help you through the process of selling your business.

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