There are several considerations for selling a business. It may require a broker, an account and a lawyer as you proceed. The benefit will depend on the reason for the sale, the business’s operation, the moment of the sale and the structure of the business. Also you should consider another few things for a solid sale of your business:
- Reason for sale:
Why are you selling your business? Is the first question the buyer will ask. The most common reasons are retirement, ill health, boredom, other business interest etc.
Is not recommend selling your business when it is not profitable because this can be hard to attract buyers. There are many attributes that can make your business appear more attractive: increasing profits, consistent income figures, a strong customer base, a major contract that spans several years
- Timing of sale:
Prepare for the sale as early as posible. This will help you to improve your financial records, quality data base for effectively achieve sales and improve your business structure. This improvement also will help the transition of the buyer.
- Business Valuation
Determinate the real worth of your business. Search for a business appraiser to get a valuation, they will help you to detailed your business worth. This will bring credibility for the buyers.
- Using a Broker
The advantages for using a business broker is that they can help keep the business running, get the highest price. For a better advertisements for your business you may discuss your expectations.
- Documents
You should have your financial statements and tax returs dating back three to four years. A list of the inventory or/and the equipment that’s being sold with the business. Create a list of sale transactions and supplies and dig up any pending documents that may be important for the sale.
- Finding a buyer
Finding the right buyer can be a challenge. You should get two to three buyers just in case the initials fails. Stay in contact with them. Find out if the buyer qualifies for financing before giving the information. If you plan to finance the sale, work out the details with an accountant or lawyer so you can reach an agreement with the buyer. The potential buyers should sign a nondisclosure agreement to protect the information of the business.
After the sale, you would sign The bill of the sale which transfers the business assets to the buyer, an assignment of a lease, a security agreement, which has a seller retain a lien on the business. To end, sign a noncompete agreement, in which you would agree to not start a new competing business.
