Before the sale of a business, various considerations should be made to ensure a successful and profitable transaction. Here is a short checklist of things to take note of before selling a business:
Why are you selling your business?
First, make sure that selling is the right decision. Are you selling because you want to pursue a new business venture? Are you selling for financial profit? It is important to have a solid reason as to why you are selling in the first place, for this is something potential buyers would most likely ask you in order to determine if you are truly a committed seller.
Is your business growing and profitable?
Once you have identified your reason for selling, it is time to collate proof that your business is growing and profitable. Documenting that you are selling a thriving business or company will draw more buyers. Look at your annual earnings, discuss and analyze your business and its potential growth with your accountant, and take note of all of your assets. Doing these would not only help you determine your selling price but also elevate the perception of buyers on your business.
What are the specifics of the sale?
Before talking to potential buyers, the terms and conditions of the sale should be laid out. Think of the sale price, deposit amount, settlement period, and transition arrangements, taking into consideration that buyers would most probably negotiate. You should also prepare the contract, ask a solicitor to review it, and make sure that legal matters and tax implications are dealt with.
A distinguished M&A firm, Generational Equity. prepares middle-market businesses in every step of a merger and acquisition transaction. Learn more about the company and how it can help you make the best sale on your business through this website.
Why are you selling your business?
First, make sure that selling is the right decision. Are you selling because you want to pursue a new business venture? Are you selling for financial profit? It is important to have a solid reason as to why you are selling in the first place, for this is something potential buyers would most likely ask you in order to determine if you are truly a committed seller.
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| Image source: bizjournals.com |
Once you have identified your reason for selling, it is time to collate proof that your business is growing and profitable. Documenting that you are selling a thriving business or company will draw more buyers. Look at your annual earnings, discuss and analyze your business and its potential growth with your accountant, and take note of all of your assets. Doing these would not only help you determine your selling price but also elevate the perception of buyers on your business.
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| Image source: workopolis.com |
What are the specifics of the sale?
Before talking to potential buyers, the terms and conditions of the sale should be laid out. Think of the sale price, deposit amount, settlement period, and transition arrangements, taking into consideration that buyers would most probably negotiate. You should also prepare the contract, ask a solicitor to review it, and make sure that legal matters and tax implications are dealt with.
A distinguished M&A firm, Generational Equity. prepares middle-market businesses in every step of a merger and acquisition transaction. Learn more about the company and how it can help you make the best sale on your business through this website.
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