Business Owners typically contemplate selling their businesses at different times through their ownership. It usually
happens at the time of "business stress." This could be anything from
employee headaches to customer problems to real or anticipated downturns
or even health reasons or impending retirement. Or sometimes you've just
had a rough day. It's not a decision to be made casually, but if, after
strong consideration, the decision to sell is made, certain steps should
be taken.
1. Prepare and analyze the financial statements of the
business. Are sales on an upward trend? Downward? Can owner benefits, such
as salary and percs, be easily identified? A Buyer will ask for a history
of tax returns and/or financials. It will be most important to be able to
show profits and owner benefits.
2. Be sure to keep your decision
to sell confidential. Employees will be naturally distressed if they are
told too soon. After all, the business may not sell. Employees may seek
more security in the form of another job if they fear a loss of income.
You may feel you are being dishonest or evasive to your employees, but
truly you'll find it a disservice to share this information too soon.
Customers could also feel insecure about doing business with a company
that is on the market. There is a perfect time to alert them. Typically,
after the sale has been consummated.
3. Seek accounting and legal advice on the tax ramifications of a sale. It's not what you get. It's
what you get to keep.
4. Take an objective look at your business premises. Are your offices clean, uncluttered and up-to-date? Do
the facilities need a fresh coat of paint or new carpet? Potential buyers
want to feel comfortable in their work environment. Now is the time to be
aware of the look of your business.
5. With a serious financial undertaking as this, it is important to obtain professional assistance.
There are unique rules involved in small and mid-sized company valuations
and sales. The business brokerage industry has progressed over the last 20
years into a very organized, standardized service to sellers of
businesses. The International Business Brokers Association (IBBA) offers
complete certifications and ongoing education to its members. Acquisitions
Unlimited, Inc. is a member in good standing with the IBBA.
Our goal is to locate the best possible buyer with the minimum of
inconvenience to you, the client, and get the highest possible price for
your exceptional business.
