5 Critical Steps To Sell Your Business At Top Dollar
1. Are you about to place your business for sale in the
marketplace or are you at the time in your life when you
wish to sell your company and reap the fruit of your labor?
Selling your business is a huge decision and milestone, and
a step that signifies that you have achieved all the goals
you set for yourself with this particular business. After all
the years of work and sacrifice, it would be insulting to
accept far less than fair market value of your organization.
2. In order to obtain the greatest value and most current fair
market value for your company, follow these five critical
steps to sell your business at top dollar.
3. 1. Obtain a Business Valuation - Likely the most important
step, obtain a business valuation from a professional and
experienced company. A valuation will help you asses the
true value of your company and what you can expect in
terms of the sale. This document is completed by
professionals who offer a neutral and unemotional
perspective when valuing your business to help determine
actual value and worth.
4. 2. Clean Up Your Books - Before placing your business on
the market, take the necessary time to ensure your books
are all in order. If you maintain precise and accurate
records, your success rate for a faster and more
expeditious sale is much greater. Placing yourself in the
shoes of the buyer, it is natural to understand that there
would be more confidence in the transaction if the
financial were accurate and in order.
5. 3. Organize Your Legal Documents - Make sure that all
business legal paperwork is in order and is accurate. Such
documents could include paperwork on the business
entity, business permits and licenses, contracts with
vendors and clients, as well as leases. Ensuring all your
legal paperwork and documentation is in order will
facilitate a faster and smoother sale of your business.
6. 4. Establish a Succession Plan - Develop a comprehensive
plan as to how the business will operate without your
physical presence. Do you have a team of key players in
place to help the business succeed when you are no longer
running the company? Establishing a succession plan is
essential and can be damaging to the potential sale if such
a plan is not developed ahead of time. Such a plan must
be put in writing and can even be temporary in nature.
This documentation allows the business to run smoothly
while offering the new owners time to acclimate to
operating the new organization.
7. 5. Leverage Your Advisors - Never sign on the dotted line
without speaking to your team of financial and legal
advisors. This will ensure the sale of your business is
completed in a smooth and successful manner, while
preventing legal issues in the future.