Operating a successful enterprise requires a lot of time, determination and effort. Sustaining the company is another task altogether. However, if you run multiple ventures, this can be daunting, and you may be forced to dispose of some of your businesses. Don’t fret, though! Selling a business is simple only if you know how to go about it.
Here are steps to guide you:
- Create a business profile
Potential buyers will want detailed information about your enterprise. A business profile will come in handy in such cases. Engage a business broker to help put this together and help you come up with a brief description and the general business performance. Also, seek counsel from the Nash Advisory team on how to restructure your business to draw more clients.
- Value your business
You want to sell your business and get the most out of the deal. Begin by getting to know the worth of your business. How can I go about this? Hire a professional appraiser with a good track record for selling businesses. They will evaluate your business and come up with an asking price.
- Hire the right team
Once you have the value estimates, know who to involve during the sale. Your team should consist of a financial planner, an attorney and a tax expert. Spend time with the selected team, develop a plan, set objectives and decide whether to sell your business intact or liquidate.
- Make some improvements!
No one wants to buy a business running into losses. The idea here is to maximize profits and ensure that your business runs smoothly. This will not only lure potential buyers but will help you get the best deals.
Think of the departments or sectors in your company that needs improvement. Make a few adjustments before seeking out buyers. Also, have your records and financial books in order; buyers will want to have a look.
- Design a sale contract
A contract plays a significant role in the sale of any business. If you already hired a business broker, they will guide you in drafting a sale contract. Also, have a solicitor to ensure that you include all the legal statutes during the sale. The contract should consist of aspects like;
- Conditions of the sale
- Asset transfer
- Employees and their entitlements
- How to deal with any emerging issues in the future
- Market your business& Qualify potential buyers
There are many approaches to promoting your business. The business broker will guide you on how to do this right to attract more buyers. Qualify serious buyers as per their financial ability and commitment. Once you locate a potential buyer, the business broker will invite them to discuss the terms of sale and sign a non-disclosure agreement. The document ensures the confidentiality of the deal.
The bottom line
Various legal requirements and statutes govern the sale of a business. To avoid issues in the future, hire the right team to guide you in the process. This way, you’ll save a lot of time and fetch a good value from the sale.