Every transaction is a bit different, but there are some standard steps that everyone needs to follow if they are going to get a smooth transaction. Planning is part of it, but that can be included here or done as a precursor to getting started on the list. If you haven’t yet, you’ll need to consider the state of the market, how well your business will sell, and what kind of buyer you have in mind.
You’ll also want to make sure that you check out the finances and get the financials of your business in order for the sale. That includes getting a proper business valuation so that you can price your business to sell. Your business worth is different from your profit, so don’t just look at your P&L and assume that you can sell for this price or that price based on the numbers.
Once you have an idea of what you can get for your business and what the financial situation is like, you’ll be able to start creating an executive summary of your business that includes all the details that buyers need to know:
- Background information about the company
- Financial details, including a recent profit and loss statement
- FAQs regarding the business, its finances, and market conditions
Basically, the executive summary is like the sales pitch for your business, so make sure that it gets the attention that it deserves.
You’ll also want to consider using the people resources that you have at your disposal. A broker, at the very least, will be a huge asset in selling your business and getting the best deal. You should also think about whether you need help from an accountant or financial planner, business attorneys, or anyone else. Typically, though, with the right broker, everything else will fall into place.
With the help of a dedicated broker, you will be able to create a listing for your business and take it to market. Marketing the sale is going to require reaching out to the right clients in the right places. Today, that includes social media and other avenues where you may not have marketed in the past.
You could handle most of this on your own. All it takes is a commitment to the work and a willingness to learn about selling a business the right way.
However, brokers are a resource that is going to be invaluable—they will help ensure that you get the best price for your business, have a streamlined sale process, and more. Plus, they’ll handle all the hiccups along the way.
Now that you’re familiar with what to do, let’s take a minute to talk about what you need to avoid along the way.