Selling your Business - Strategy
Are you thinking about selling your business?
There are many strategies that can help you make it happen:
Financial records and tax filings current.
You may be doing the right thing with your company but you'll scare off buyers with tax-reporting extensions or excessively delayed financial returns. Any difficulties staying current in the past consider resolving the issues by switching the tools used for your accounting or consider moving to a different accounting firm.
Accuracy is important.
Business buyers who are serious will demand a high level of accurate comfort, especially when it comes to the accuracy of cash-flow statements, accounts-receivable lists, and the value of furniture and fixtures, tools, equipment, other assets and inventory. When s elling your business, uour efforts will really pay off to invest in audited financial statements by certified accountants /firms.
Timing to sell your business
Everyone may be looking to sell a business during a hot market. It would be best for your interest and more important to pay attention to the current and recent developments within your business and industry. The fact is: Don't think about selling your business during a significant downturn (If you don't have any other options and your willingness to accept a rock-bottom price is also important).
Kiss your business - keep it simple sweet heart.
When selling your company or business, anything unusual may be a red flag. Sell your business to a person you know or to a stranger would eliminate complications before you try to sell.
Accept reality when you try to sell a business.
If the business is in a highly competitive market, normally, your bidder will insist on a non-compete agreement (and perhaps include a clause in the sales contract that states that you will not hire or try to hire key employees for any new businesses at all). If you're not prepared to make such deals, selling your business may be difficult and time consuming.
Right price for your Business.
How much is the right price for your business? A good rule of thumb is that only on very rare occasions do businesses sell for a price that’s as high as one times revenues. If you're trying to sell your business for more than that, be prepared for your financials to be examined under a close scrutiny.
Bill Henthorn formerly was principal broker and owner of a resort / commercial real estate brokerage in Honolulu which specialized in representing sellers in transactions up to $50MM.He currently serves as the marketing director of http://www.acquireo.com
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