A new year brings with it a slew of changes and new beginnings. With this you might be
making some major business decisions and reevaluating your career goals — whether
getting ready to retire, considering another job, or merely wanting to sell for personal
reasons.
Surprisingly, January can often provide one of the best opportunities to sell, as ambitious
entrepreneurs with big New Year’s goals kick off their company search. As with any
successful commercial sale, meticulous planning and certain preparations are key — from
getting your books in order to getting your space (literally) in order — before you can
even start looking for a potential buyer. Think about the following tips to make sure your
business is in tip-top shape when the time comes to truly sell:
TAKE STOCK OF YOUR GOALS. Before you get too ahead of yourself, first ask a few
simple questions: Are you looking to hand off the business to a devoted employee or close
family member? Would you rather sell the business in full at closing and leave with a
wad of cash? Does maintaining the company brand matter much to you? Would you be
content to keep working for a couple of years as a company consultant? Before getting too
wrapped up in the sale, first consider your own needs and desires.
GET YOUR FINANCIALS IN ORDER. Some buyers will be looking for at least two or
three years’ worth of detailed books, and the more organized your financials are, the
better off you’ll be in the long run. Compile all of your tax returns, financial statements,
employment agreements, supplier contracts, projections, etc. Why? Because poorly kept
books are likely to ruin the business sale before it even happens. Begin gathering this
information as soon as possible to leave ample time to make adjustments.
DETERMINE THE WORTH OF YOUR BUSINESS. Enter a third-party business valuation,
which can be crucial in estimating your company’s value. Just like you may take your car
to the mechanic for a tune-up, business brokers are experts when it comes to the buying
and selling of businesses. A qualified business broker will review all aspects of your
business (as well as the competition) in order to make a detailed and accurate assessment