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Are you planning on selling your business? Whether the time has come to retire or you are simply looking for a new challenge, you will want to get the process right so that you can get the most from the sale while also having peace of mind knowing that you are leaving the business in a strong position. This means that you will want to prepare to sell and get the business in the best possible position before finding a buyer.
Get a Valuation
A good starting point when selling your business is to get a valuation of your company from a specialist. This will give you an idea of what the value of your business is worth and will give you an idea of whether or not you need to make improvements to increase the value.
Get Your Books in Order
When finding a buyer for your business, you need to make sure that you have to rebuild your finances readily available – this is the key information that any buyer will want to look through.
Typically, you will need 3 years’ worth of financial data that should be collated and presented in an easy to understand format. The more formal these documents are, the stronger the impression you will make.
Consult Your Financial Advisor
It is also a good idea to consult with your financial advisor before putting the business up for sale. This is because you will want to understand your tax obligations and have a strong understanding of what the sale will mean for your finances.
You can also create a plan for the money from the sale to help you to achieve your future goals whether this is early retirement or putting money into your next venture.
Know the Profitability of Your Business
It is also important to know the profitability of the business off the top of your head and to have the documentation easily available as evidence. Being able to show a strong profit pattern over a sustained period is one of the best ways to add value to your business.
Therefore, if profitability could be better then it might be worth focusing on this for a while before putting the business on the open market.
If you plan on selling your business then these tips should help you to prepare and get into a position to make a sale. Preparation is key to making your business more successful and could make a huge difference to the amount of money that you get from the sale.