Are you thinking of selling a company?
There are a couple of reasons a business owner might want to offload a company they’ve worked so hard to build. Perhaps that was the plan all along; start a business, increase its market value, and then exit through a sale. Or maybe you could be looking to venture into another industry.
Regardless of your reason for wanting to sell, there’s no doubt you want it done quickly so you can move on to other things. Unfortunately, selling a business isn’t the same thing as selling a shelf product.
There are a number of things you must do, and in this article, we’re giving you tips that can help you find a buyer quickly and close the transaction soon after.
1. Determine the Value of Your Business
One of the first things you must do when selling anything is to slap a price tag on it.
When it comes to selling a business, however, the process isn’t as simple as working up a random figure. You must start by determining the value of your business.
There’s a formula for determining the market value of a business, but it generally involves knowing the value of the assets, then subtracting your liabilities.
If you’re not well-versed with the math behind the calculation of business values, don’t try to cut corners. You might end up undervaluing or overvaluing your business. It’s advisable to hire an experienced professional to do the job.
2. Get the Documentation in Order
What proves that the company is indeed yours?
What shows that the company is profitable?
There’s a lot of documentation involved in starting and running a business. When it’s time to sell it, you’ll need to provide most of this documentation.
A certificate of business registration is proof of ownership. It also shows that the business indeed exists. There are a host of financial documents, including balance sheets, income statements, and profit and loss accounts, that you need to get ready. Most potential buyers will particularly be interested in financial documentation.
Also, if the company has regulatory licenses and permits, ensure they’re valid and up-to-date. If your business is a food service establishment, for example, no one is going to show interest in buying it if the food service license has expired.
Strive to ensure every piece of documentation is ready, especially when your goal is to sell your business fast. You don’t want a missing document to hold up the sale.
3. Put the Company on Sale
Putting a company for sale isn’t the same thing as putting a house on sale. You can’t just erect a “for sale” sign in front of your premises.
There are online platforms where you can list your business and wait for potential buyers to contact you, but that can take time. The right move is to contact a business broker. This professional will help you find a potential buyer quickly.
Hiring a broker means you must be willing to give up a percentage of the sale price as a commission. It’s worth it, though.
Selling a Company Fast Made Easier
Selling a company quickly isn’t the easiest of tasks, but you can pull it off. A lot rides on how well prepared you’re before you put the company on sale. With this guide, you now have information that can help you find a buyer fast.
Keep tabs on our blog for more business tips.