Normally, when it comes to selling a business, it can take anywhere from six months to a year to obtain a respectable buyer. Even during prosperous economic times, owners of small businesses occasionally must abandon their ventures swiftly. In these kinds of instances, soliciting the help of a business broker can be vital to your sale. If you’re a business owner, here is some proven advice that most professional brokers would provide that would help enable you to sell your business quickly, and with the minimum of hassle.
1. Get Key Paperwork Ready Early
Undoubtedly, prospective buyers will want to inspect your key paperwork and financials prior to taking your business on. Once you decide to sell, ask your accountant to prepare your financial statements immediately. Buyers will need to look at the following documents, when carrying out their due diligence: lists of inventory, thirty-six months of accounts with balance sheets and profit figures, tax returns, customer and supplier agreements, and leases.
2. Encourage Staff to Buy
Many small business entrepreneurs prefer to hand their companies over to their staff. Assuming that your company is profitable (and does not have a high turnover of staff), letting your workforce take the reins is a great way of recognizing their loyalty. Also, brokers recognize that this option increases the probability that the company will continue to be successful. An ESOP (Employee Stock Ownership Plan) provides vital tax advantages and versatility, as far as the owner’s future input into the company goes. Ask your accountant and/or lawyer whether ESOPs are the best option for your circumstances. In many cases, this scenario turns into a Win-Win for everyone.
3. Ensure Your Pricing is Correct
Finally, to sell your company fast, it is crucial that you price it in line with market expectations. If your valuation is incorrect, you will struggle to attract buyers. Once you have built a successful business, it might be hard to determine a reasonable price objectively. Nonetheless, remember that an unrealistic asking price will slow the sale of your company considerably. Brokers are exceptionally skilled at assisting owners with company valuation and strategic pricing to sell.
Most small business owners begin preparations for the sale of their companies well before their preferred exit dates. When the thought comes to sell, it’s best to start preparing as early as possible. Then, if you must sell quickly, time is one luxury you won’t have; yet, if you’ve prepared, it’s possible to sell fast when you need to. However, it’s always best to prepare for the unexpected from the outset, you’ll thank yourself later!
For more information and details, call Del Lingco International at 713-783-5800.