Positioning A Business For A Sale
It is time to sell the business you worked so hard to create. All those long hours spent working while nobody was looking are about to pay off. This is your labor of love, so you want the sale to come off without a hitch. There is a bunch of ways to position the company for a sell, but it is important to do them well out ahead of time. Some estimate that it takes up to two to four years to sell a business. Stay on top of the trends and plan ahead to sell that business for maximum profit. Here are a few other things you can do.
The first thing that needs to take place is a fair business valuation. It is easy to set the price of your business too high, which will send buyers running. You love your business, after all. A good third party company can come in and take a deep inventory and give you a fair figure. This selling price is now the goal moving forward.
The next step is to prepare an aggressive business plan for the next few months to a year while the business is being sold. This should include some innovation and new products if applicable. Buyers want to see that a business is humming right along with growth potential when they come knocking, so give them a show.
During this time your business’s profits should be maximized. This step is much easier said than done, but if an aggressive business plan is in the works then the business should be moving right along. Another way to maximize profits is to cut unneeded assets. This can be tough as a small business owner because unneeded assets can come in the form of low responsibility employees. Selling physical inventory that isn’t being used is another way of scuttling these assets. It also cleans up the property to make it looks nicer.
Work really closely with people in key roles inside the business. Get a tax break and send them to classes if you can. These people are now assets to a buyer. The better they are at their jobs the more attractive the business will be when it comes time to sell. Plus, it reduces the stress of the buyer because they know you will leave people behind who know how things are run. There are plenty of things you can do to position your business for a sale.
