Planning on selling your business in the near future? Whether you are retiring or you simply want a new challenge in life, you need to be aware that this can be a long and detailed process that will involve preparing the company for sale, finding a buyer and then going through the transaction process. Read on to discover the key steps involved.
Prepare For a Sale
First, you will want to take the time to prepare the business for sale and a year is usually a good timeframe for this. This will be so that you can rest assured knowing that you are leaving the company in good financial health while also helping to maximize the sale value. This can involve:
- Building a strong corporate structure
- Securing new clients
- Getting contracts in order
- Upgrading company equipment
- Streamlining processes
- Reducing expenses
Get a Valuation
Once you have taken the time to get your business in a strong position, you should get a business valuation carried out. They will be able to provide you with a realistic figure that can be used when it comes to negotiating with a potential buyer.
Work With an Advisory Team
This can be a long, stressful and complex process, which is why it is smart to have an advisory team in place. This will involve an attorney and accountant that are experienced in mergers and acquisitions and will be able to sell your business for the maximum amount while reducing stress.
Find a Buyer
At this stage, you will begin the process of trying to find a buyer for your business. There are many ways that you can do this, such as listing your business for sale in a relevant publication, advertising on social media or approaching those that might be interested. Using a broker can be a great way to find a buyer and help you to secure the best deal.
Once you have found a qualified buyer, it is time to enter the negotiation stage and this is where your business valuation will come in handy. Keep everything in writing and have a firm figure in mind. It is then a case of carrying out the transaction, which can be complex and should be handled by your solicitor.
These are the key stages that you will go through when selling your business. This can be a complex process that takes around 2 years, so it is important that you are taking the right steps and taking your time to find the right buyer.