How to sell a working business

Businessmen can receive income not only from the functioning of the enterprise, but also from the subsequent sale of their business. If you have created an enterprise, but this area is no longer interesting to you, the business can be successfully sold. Proper preparation for the sale is of great importance.

Instruction manual

1

To get the maximum profit, you need to carefully prepare for the transaction. It is best to get an audit opinion. This will make the sale process easier.

2

When buying a business, interested parties carefully study all the documents submitted. Collect the package of documents in advance. Since there may be several buyers, it makes sense to inquire about applicants and evaluate their solvency.

3

When preparing a business for sale, you should look at all the contracts. Renew those of fundamental importance. For example, it is worth extending the lease, which ends soon.

4

Many enterprises own buildings in which production lines are located. Be sure to contact the BTI and take relying on real estate certificates. Prepare copies of balances and their applications. The bank should take a certificate that you have no debts. If possible, get letters of recommendation.

5

Evaluation of business and real estate attributed to the enterprise should be made using several methods. It is important to do a marketing review. High-quality, it can significantly increase the value of the business. The following parameters should be present in the review: market capacity, market share occupied by companies and other indicators.

6

It is very good if you can prepare a detailed description of the product policy of the enterprise. Be sure to attach to the documents an overview of competitors and consumers. This information will be useful to buyers. In the marketing plan, give a detailed description of the manufactured goods or the services your company provides.

7

The current business plan is of great importance. Buyers should see in it an analysis of the capacity and resources of the enterprise. In addition, the business plan should list the strengths and weaknesses of the enterprise. This is a very important point. Prepare also an analysis of the financial and economic condition of the enterprise.

8

Please note that there may be several options for selling a business. This may be a lease with repurchase, merger, acquisition and sale of a business.

9

After you submit the documents to the buyer, he will pass them to his lawyers for examination. It is recommended to draw up an explanatory note in which significant points will be reflected. When selling a large business, it is better to entrust the process of selling the enterprise to a specialized company known in the market for its business experience. This will save time and effort.

Selling a business. Buying a business. Business Broker in 2019