Selling a business in South Florida is not something that will happen overnight. From start to finish, selling a business could take more than a year to complete. That’s why if you think you might be interested in selling your business sometime in the near future, you should start preparing now.
Here are five steps you should take now to prepare yourself for selling your business.
1. Know How Much Your Business is Worth
What the business is worth to you, or what you think it should be worth, is not always what it will be worth to a buyer. So, before you make the final determination to proceed with selling your business, you should get a formal valuation completed.
This valuation will put a number on how much your business is worth, which you can then use to make your own decisions and to show to potential buyers during negotiations.
2. Get All Your Documents in Order
If you’ve run a tight ship, this won’t be an extreme headache, but it will still take some time to gather all your financial documents. Generally speaking, a person who buys your business might want the last three years’ worth of financial data to analyze.
3. Plan for Your Future
This doesn’t mean make plans for how many extravagant vacations you’re going to take once you’ve sold your business. Instead, planning for your future in this regard means you should consult with your accountant or other financial professionals to determine the tax implications of selling your business, which could help you determine the best structure for doing so.
4. Create a Transition Plan
Your knowledge, and that of others, could be vital to the business’ future success. As such, the buyer of your business may need to consult you from time to time once the deal goes through. Make a transition plan, and possible consulting agreement, part of the business sale.
In addition, create a transition plan that involves current managers at your company and what their roles should or could be once you sell your business to someone else. Plenty of people are likely to stay on board with the new owner.
5. Keep Producing
Once you’ve made the decision to sell your business, it’s easy to lose focus on producing great results on a day-to-day basis. This is an essential part of selling a business, though. While you’re going through the sales process, you’ll want to keep your business performing at a high level, both because it will result in higher profits for you while you still own the business and because buyers will want to see steady returns and growth in the months preceding the sale.
By following these five tips, you’ll be well prepared to sell your business and enjoy your life after the sale.
Talk to a Sunbelt South Florida broker today! Sunbelt Business Brokers of West Palm Beach provides dedicated business brokerage services for all of your selling needs.
Whether you are an established business owner nearing retirement and looking to sell, or an ambitious entrepreneur seeking your next investment opportunity, there is no reason to look beyond Sunbelt Business Brokers. Visit us at 800 Village Square Crossing, Suite 216 Palm Beach Gardens, FL 33410 or contact us at (561) 832-9222.