How to sell a business

Has your business stopped satisfying you? Would you like to do something else? Selling an existing business is a good way to make money. The cost and effectiveness of sales is significantly affected by the quality of preparation for the transaction.

If you have a large enterprise, take care of obtaining an audit opinion. Buyers carefully study all the documents. The decision on the purchase will be helped by the presence of a conclusion from the appraiser and auditor. There may be several buyers. You will significantly speed up the sale of the business if you collect all the certificates and documents in advance. In addition, you will save buyers from conducting their own inspections.

Carefully review all concluded contracts. If you have signed a lease ending soon, it should be renewed. Many own property. In this case, it is worth contacting the BTI and getting new information. Perhaps the value of real estate will be higher than the value of the business itself. Make copies of balances and all its applications. Get a bank statement about no debts. Good to provide letters of recommendation. Conduct an invisibility assessment and an assessment of the business itself. Do this in several ways.

Increase the value of the business will help a marketing review. It should indicate the market share that your company occupies, the market capacity. Describe product policy. Survey consumers and competitors. The marketing plan should include a description of the services or manufactured goods. Provide customers with a valid business plan. It should be an analysis of the strengths and weaknesses of the business, an analysis of the resources and capacities of the enterprise. An important analysis of the financial and economic situation.

Work through the various options of the transaction in advance. This can be not only a purchase and sale of a business, but also a lease with repurchase, acquisition or merger. Prepare a package of documents. The buyer of your business will give them to his lawyers for a preliminary study. Compose an explanatory note. This is an important point. Having a note will help you have a discussion with a customer when some of your business’s performance is not very good.

It is best to entrust the preparation for the sale to professionals. The cost of services of such companies can reach 13% of the value of the business. Of course, this option is of little use for selling small businesses. But this will allow you to effectively save money and effort when selling a business whose value exceeds 100 thousand dollars. Choose the company that not only prepares all the documents, but also takes up the marketing and sale of the business itself.

Selling your business. Guidelines