How can you boost your chances of selling your business? It is essential that you prepare far in advance before placing your business on the market. Here are some key items to consider before going to market.
Legalities
You should think of legal issues. Selling your business involves the creation and execution of a complex legal agreement. It is very important to hire a good lawyer or law firm. You will also want to settle all litigation, environmental, and/or other issues that could potentially ruin a sale.
Only Work with Serious Buyers
An essential part of the selling process is working with an experienced M&A Advisor. A professional M&A Advisor will help you determine if a prospective buyer is a good fit for your business. They will also help you weed out “window shoppers”. A serious buyer should be willing to submit a Letter of Intent. The price and terms of the deal should be clear to everyone, as well as what assets and liabilities are to be assumed. It is important to have an experienced lawyer helping you through various aspects of the sales process.
Flexibility on Price
You should be prepared to accept a lower price than you might prefer. Some reasons that this may occur range from a lack of management depth or a lack of geographical distribution to a dependence on a limited number of clients. Dependence on a small number of customers or clients can give potential buyers pause. This could raise concerns regarding the stability of your business. If you address these issues years before placing your business on the market, it will help you achieve the price point you desire.
Improve Your Chance for Success
There are other steps you can take to achieve the price that you want for your business. You can increase the visibility and profile of your business. Here are some things you can do:
- attend trade shows
- boost your online profile; step up your social media game
- explore creating a coherent public relations program
Selling a business is often a waiting game. You need to be psychologically prepared to wait a considerable period of time before your business is sold.
Preparation, good organization and patience will help increase your chances of selling your business and achieving an appropriate price. The sooner you begin organizing your business, the greater your chances of success.