Get Your Business Ready to Sell

At some point, business owners must sell their business. What does it take to get your business ready to sell? A business owner should plan for selling their business long before it is actually placed on the market. A recent article in Smart Business, titled: “How To Get Your Business, and Yourself, Ready For Sale”, author Adam Burroughs explores key points on getting your business ready to sell. Here are some key points for selling your business.

Broadening Your Options

Shrewd business owners will want to give themselves as many options as possible. Early planning is key. A failure to plan early could lead to a lower selling price. Planning for the eventual sale of your business as far in advance as possible is a good idea if you want to get the best price.

Planning In Advance

According to Burroughs, business owners should start planning to sell their business at least 2 to 3 years before they actually plan to sell. This way, business owners will have enough time to make operational improvements designed to maximize the business’s overall value.

A Financial Review

A business owner should have a third-party review the business’s financial situation. Any serious prospective buyer will look long and hard at your business’s financials. You will want to review financial statements for at least the previous 2 to 3 years.

Your Management Team

In his article, Burroughs points out, when selling a business, the management team is a variable that often gets overlooked. Prospective buyers can get very nervous about the stability of the management team once ownership has changed hands. Often, the buyer will insist that the owner stay on after the sale during a transition period. Having a competent team in place that is willing to stay with the company will help you get your business ready to sell.

Preparing to sell your business involves many variables. The sooner you get experts involved in the process, the better off you will be. EBIT Associates can help guide you through the process.

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