If you’re considering selling your business, there are a number of things you can do to increase the value and chances of a successful sale.
Clean Up the Premises
The goal is to increase the Curb Appeal. Potential buyers will base their decision on qualitative and quantitative information. Don’t overlook the emotional reasons why buyers fall in love with a business. A clean look, with orderly operations, will add to the feeling the buyers get for your business.
Clean Up Your Books
We strongly encourage you to keep your books and records up-to-date, and accurate. Write down stale inventory, charge off any bad debt, bring your accounts receivable (A/R) current, and settle any outstanding liabilities. Clean books make a world of difference.
Update Business Valuations
Make sure you know what your business is worth before you start the process. It may be that now is a great time to sell, or it may be that based upon the valuation, you need to work a few more years to prepare the company for an optimal sale.
Systems and Personnel
The most valuable businesses are the ones that don’t need the owner. As odd as that sounds, if a business has quality systems and personnel in place, it will be more valuable and more likely to sell because it isn’t dependent upon the exiting owner to succeed. Put the personnel and systems in place.
Business Partners
If you have minority or silent partners, make sure you understand their position and that you have the ability to legally negotiate and close the transaction. Nothing is worse than getting a great deal worked out, only find out your business partner won’t participate in the transaction.
Bristol Group specializes in representing owners with the sale of their company. If you have questions about the process, valuation, or timing of selling your business, please feel free to contact your local Bristol Group Business Broker, Tory Adair at tory@bristol.group, or (480) 388-0870.