4 Steps To Prepare Your Business For Sale
Deciding to sell your business is a tough decision, and once you’ve made it, there’s plenty to organize. Though it can be a drawn-out process, these four steps will make things a whole lot easier.
1. Seek a valuation
It’s essential to get an accurate valuation to determine precisely how much your business is worth. A valuation can help you find out what you’ll earn when you sell and which buyers are offering the best prices. Take a look at the prices of similar businesses in your area; this will give you an approximate idea. Once you’ve done this, you can contact a professional broker to provide you with a valuation and create a marketing plan. It’s helpful to have a marketing package that provides buyers with a clear picture of your strengths and assets.
2. Get your accounts organized
When you’re preparing your business for sale, it’s essential to organize your accounts. Potential buyers will need to check how much income you’ve made over the last few years. Your potential buyers will also want to take a look at your projections for future profits. Future projections are important to show your buyers that the business has plenty of potential for growth. You’ll also need details of all your contracts, asset valuations, company reports, and debts. Work with your accountant to establish all of these details before you begin the process.
3. Due diligence
The due diligence process is a crucial aspect of any business sale. Due diligence means the essential audit and investigation of the investment. The buyer hires a law professional to carry out thorough research before they agree to any contract. The lawyer will research every financial and legal aspect of the business. So how can you prepare for this investigation? The best idea is to use a virtual data room.
A virtual data room can help you to organize all of your financial and legal documents within the cloud. With a virtual data room, it’s easy for both parties to access the documents they need. Failing to use a data room means the sale will be complex and long-winded. It’s important to remember that an unsuccessful due diligence process could compromise the deal. Buyers will be looking for red flags from the get-go and so it’s important that all your financial data is included and up to date. Again, you can have your accountant help with this process. You may be looking to sell, but now is not the time to be stepping back from your business. It’s important to put all the aspects of the sale together first.
4. Seek the right support
When you’re looking to sell your business, it’s important to seek out the right kind of professional support. The DVS Group can help you to sell your company by positioning and presenting your business to buyers. No matter if you are selling to your management team or a third party, the DVS can help to reduce the risk and organize the transaction process. For further information about the DVS services check out https://thedvsgroup.com/our-services/exiting-business-owner/.