3 Rules for Selling Your Business
So, the question is, how to sell a business?
There are a couple of quick points to consider before you have your business taken to market. After all, your business is a labor of love that you’ve most likely nurtured from seedling into a thriving business that has provided for your family and the families of your employees. A transaction as monumental as selling your business, can’t be entered into lightly.
Let’s have a look at a simplified business sales process.
Before you go to market to engage with potential acquirers you should first prepare your business for due diligence. It’s important for a seller to not underestimate the time and effort that is going to be needed from them, in this phase of the transaction.
Every single aspect of the company will be picked apart, scrutinized and examined. So, ensuring all aspects of the business are sound is vital, especially when it comes to your business’s financials.
Establish clear buyer expectations
This is done by establishing what you want from the sale, both in terms of valuation but also what will happen with your business after the transaction.
Obviously, you want to sell your business at fair market value. You should determine what this is before you go to market. Next, it’s important to understand buyer motivations. This could include what the buyer will be focusing on when evaluating your company. Is it revenue? Do they want cultural alignment? Is their intent to merge expertise in the hope of tapping into new markets with your unique selling point or to keep your business run separately?
Once you’ve established their expectations, you can better gear negotiations.
Keep the business moving forward
And in your selling experience, Destined will be there to lead and advise on the process, so that you can maximize shareholder value, as you concentrate on the continued running of your operation, as the transaction progresses. These rules are a sure-fire way to ensure a solid and beneficial deal for all.
Contact us today for more advice on how to sell a business, and the business sale process.