Planning Is Key When Selling Your Business

[Stacy L. Alario, FCBI]

Are you a business owner at that stage in your life where you are contemplating the potential sale of your company?

 

 

The main key to a successful sale is preparation. Keep in mind that whatever you put into the process is what you will get out of it. Understanding the selling process and being prepared are the key indicators that will establish the tone of selling your business and help you be more comfortable when you are ready. The selling process is important and requires a huge commitment.

 

 

Selling your business needs to be a calculated decision based on many factors....

When you are ready, recognizing "The 10 Do's of selling your Business" will position your company at the right place, and help American Business Brokerage assist you with understanding the ins and outs of the process.

1. Do... Ensure it's the right time for you to sell your business and understand the reason behind your motives. While the purposes of selling are typically personal (retirement, ill health, death, divorce and burnout) other significant considerations such as money is generally involved as well. Selling your company is perhaps one of the most difficult decisions you will have to make, so just confirm your decision, and stand behind it.

 

 

2. Do...Meet with your team of Trusted Advisors. A meeting with American Business Brokerage, your exit planner, attorney, accountant, and other crucial team members will play a huge role in gathering and preparing all necessary documents for Stacy Alario, your broker. Your team of trusted advisors also needs time for preparation so they can effectively plan to assist you in the transaction.

 

 

3. Do...Housekeeping and maintain accurate books, records, and financials. Having up-to-date information on your company is not only a good practice, but it also presents your company in the best light to Buyers. Generally, buyers and their advisors look at a minimum of 3-5 years of tax returns, financial statements, and payroll history as well as detailed fixed asset lists including equipment and vehicles.

 

 

4. Do...Get assistance from a reputable business broker, preferably a Certified Business Intermediary of the International Business Brokers Association.

 

 

5. Do...Secure a business broker who understands and will uphold confidentiality. Pertinent information conveyed to unqualified buyers can be damaging during the selling process and can potentially harm your current business. Always insure confidentiality is upheld by all parties involved. American Business Brokerage understands confidentiality and promotes the highest of ethical standards.

6. Do...Continue to run your business as usual. Carry on the day to day business practices and keep your attention on demands, regarding employees, clients, sales, and ultimately costs and profits. Allow your business broker to do their job, so you can do yours. After all, that is why you invested in one.

 

 

7. Do...Have realistic expectations. Knowledge, understanding and having realistic expectations are the stepping stones to a smooth and successful sale. To become comfortable with the entire process, it's good to know that it typically takes the majority of business owners six months to a year to sell their company. So timing and momentum facilitates clear goals and expectations.

 

 

8. Do...Stay involved and active with current information and financial records throughout the entire process. Simply stated, know what is taking place at all times; after all, it is your company until it's sold. Even if you are feeling tired and burnt-out, remaining active and keeping the broker advised and supplied with up to date information, reassures buyers that your business is worth looking at.

 

 

9. Do...Be flexible and anticipate buyer requests. Expecting and organizing vital documentation that buyers and their advisors may need, such as an asset list, lease copies or insurance information will reduce the stress involved with the transaction. Be flexible doesn't mean you have to disclose all data up front, it simply means be prepared. American Business Brokerage knows what and when this sensitive information should be disclosed.

10. Do...Negotiate, not dictate. Don't be the kind of seller who wants it all at closing, or who won't accept last minute addendums. Depend on your business broker and team of trusted advisors to assist with the negotiations.

 

 

Is the timing right for you? If you are ready to sell your business D0 let Stacy L. Alario, FCBI and American Business Brokerage, Inc. assist you with this exciting decision.

 

 

American Business Brokerage, Inc. has represented seller's in the sale of their businesses for over thirty years. Please call Stacy L. Alario, Certified Business Intermediary for a confidential appointment to discuss your exit strategy.
[phone] [e-mail]
www.americanbusinessbrokerage.org