Preparing For The Sale
Knowing What to Expect
Enlisting the help of qualified outsiders who are impartial and
specialize in the different areas of selling your business will save
you both time and money.
guide you through process of selling businesses, which has essentially, three phases.
Step 1: Getting Ready
Before you put your business on the market for sale, make sure it is
salable by identifying and solving any issues. Conduct a thorough
examination of your company’s finances and liabilities, as well as
the market conditions. Consider hiring an independent third party to
assess the value. They can re-cast the financial statements and
show true profitability and value to determine a fair and accurate
Step 2: Finding Buyers
Locating and then qualifying buyers is difficult. Confidentiality is
an issue and screening is a time-consuming process. First you will
need to identify their objectives. Are they a first time-buyers,
experienced business owners, investors or
corporate buyers? Then you
will need to look into their background, check their references and
assess their financial position.
Step 3: Negotiating and Closing
Hundreds of points will be covered during negotiations such as terms
of payment, employee contracts, royalties, non-compete agreements
and warrantees. Calling in the experts – lawyers, accountants and
investment bankers - early may protect you and ensure you end up
with a deal that is fair for all parties involved.
Tips For Selling Your Business
- Put the Books in Order
- Determine the Value of the Business
- Continue to Manage the Business While Selling It
- Negotiate Effectively by Calling in an Expert
|Determining Fair Market Value
|Don't know how to set a price?
Contact EBB for a