Selling your business can take years to accomplish. There is a lot of preparation that goes into selling a business. Here are some tips for getting your business ready to sell.
Be sure to work out any significant problems well before placing your business on the market. Address any litigation or environmental issues before it is time to sell. Pending litigation or a potentially costly environmental cleanup will scare away prospective buyers.
Determine who has the legal authority to sell the business. Selling a business can become more complex if a board of directors or majority stockholder situation is in place. Dealing with a sole proprietorship or partnership is less complex.
Maintain a flexible mindset. You can’t have everything you want. Both buyers and sellers need to be flexible. One example is real estate. Buyers may not want real estate associated with a given business. Sellers should be prepared for this. Another thing that sellers should prepare for is accepting valuation multiples for lack of management depth, reliance on a small number of customers, and other factors.
Be certain to discuss non-negotiable items upfront. This will save everyone involved a great deal of trouble.
Sellers should partner with experienced professionals such as attorneys and business brokers. You’ve put a lot of energy, time and resources into building your business. EBIT can help you achieve optimal results.
EBIT Associates is a leading intermediary and investment-banking firm advising private and corporate clients on lower middle market transactions. We specialize in lower middle-market mergers and acquisitions and high-end business brokerage. We primarily sell companies with revenues of $1-500 million. Although our process allows us to facilitate larger engagements, we focus on companies with $1-15 million EBITDA.