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Get your business sold: 6 steps to take

Have you decided to sell your business? There are many reasons why someone may sell their business. It could be their choice or not but when you choose to sell your business, it is important to prepare for it and this does take some time. You want to get the best price for your business.  Here are six steps to take to sell your business.

STEP 1: Decide why you are selling

This may be the first question you are asked when you are selling your business and you need to have an answer. Do you want to retire? Has someone died or become gravely ill? Has there been partner disputes? Have you become overworked or got bored with the business? Whatever the reason, you need to find the best way to tell your potential buyer why you are selling the business.

STEP 2: Look at the timing of the sale

If your business is going through a slump and sales are low, you won’t get a good price for your business. You need to make sure your business is looking its best so that you can get the most from your sale. Try to time the sale of your business when it is doing its best.

STEP 3: Get your house in order

Nobody wants to buy a mess. You need to ensure your business is neat as a pin before you sell it. This is the physical appearance of the business as well as in the books. Check that your financial accounts are up to date, ensure you have an operation manual which talks about how processes happen in the business, and check that there aren’t any minor maintenance issues which could detract from the sale.

STEP 4: Build your advisory team

There are many parts at play when you decide to sell your business and having an advisory team will ensure that you and the buyer get the best for each other. On your advisory team, you will want to have a broker or investment banker, an attorney, and a trusted colleague to be a soundboard for the decision you will take in the sale of your business.

STEP 5: Prepare for the negotiation

You will need to negotiate with the buyer. You should decide what is the minimum you want for your business, what is what you expect to get for your business, and what is the ideal situation for your business. With these aspects in place, you know how you will negotiate and won’t be afraid to walk away to plan B or C if plan A doesn’t wish to negotiate with you and create a fair deal.

STEP 6: Let them do their due diligence

The buyer will do their due diligence which will involve investigating what you have said about your business. They will look into the history of your business, interview your customers, suppliers and employees, and review the financials of your business. You must have this information available for them should they ask for it and grant them access to speak to the people who they will be managing when you leave.

By following these six steps you will be well on your way to getting your business sold.

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