In my previous blog I listed reasons why Owners of businesses sell. Whether it is for retirement, get estate in order, or pursue other interests, you need to plan on an orderly transition to new ownership, leaving you free to implement your plans for your future.
Sellers do not realize the steps that should to be taken to insure a smooth and successful sale of their business. . Among the many steps necessary, I’ll mention just a few to get you started:
- Prepare a plan to sell before even thinking of selling. In other words, an Exit Plan.
- Be aware of just how important Confidentiality is in the process of the sale.
- Prepare yourself with a true Opinion of Fair Market Value, before committing to Asking Price.
- Make sure that the value of your company meets your financials needs before stepping away. You may need to make some changes and stick around a few more years.
- Prepare yourself, your business (appearance, equipment) and your financial records before going to market.
- Surround yourself with experienced advisors. Don’t use your divorce attorney to try and assist in sale of a privately owned company.
- Select the proper representative for the transaction. Only a Business Broker/Intermediary has the knowledge, experience, and tools to safely and properly bring the sale to a successful conclusion. The individual may not be as well versed in your particular industry, but he must be experienced and knowledgeable in the business brokerage and mergers & acquisitions profession.
Sunbelt Business Brokers, Greater Bay Area | (408) 436-1900 | sunbeltbayarea.net