Posted by Timothy Harvard , on Sep, 2015
Many business owners have spent a great deal of time and energy building their enterprises from the bottom up. They have invested long hours and have sacrificed a great deal to make their ventures profitable, self-sustaining and successful. However, the time will come for some owners to sell their organization. Once an owner makes the decision to sell my business, they should immediately start preparing for the process.
Creating a sales strategy is necessary for an owner to successfully transfer their business to a potential buyer. Owners should assemble a team of professionals to sell my business. This team should consist of an adviser, investment bankers and legal, tax and business experts. Having a sales strategy in place will save time, money and weed out any buyers that are not serious about purchasing a business.
Owners who sell my business will more than likely alter their current tax status once the transaction is complete. Since this is the case, an owner should use a tax expert to prepare them for their new status and to deal with any issues associated with the sale of their business.
Clean Up Non-Essential Financials
Business owners sometimes pay for non-essential financial obligations which should not be included within the sale of their organization. Non-essential financials include expenses not directly related to operating expenses. They include insurance for non-working employees or expense accounts. A potential buyer should not be expected to pay for these financial obligations and an owner should eliminate them from the books.
A business owner should make sure that they review the financial aspect of their business before they sell. They should use the services of a CPA to evaluate the cash flow and the overall financial viability of a company. A review by a CPA will also provide buyers with a realistic evaluation of a company’s financial status and it should help to identify any potential issues with an owner’s business.
Determine the Value of a Business
All owners must determine the real value of their organization and not sell my business based on assumptions. Having a standardized valuation to determine the true value of an organization is crucial for an owner if they want to be taken seriously during the selling process.
Business owners should also gather essential paperwork, develop a marketing package and have experts on hand that can weed out uncommitted buyers. While selling a business is not an easy process it should not be an extremely difficult task to perform. Sunbelt Midwest is an organization which is made up of a group of business intermediaries and brokers. They provide the services and expertise which buyers and sellers will need when it comes to purchasing or liquidating a business organization. Their organization will benefit your bottom line and will help you to get the best price and terms for the transaction.