I Want to Sell my Business. Where do I Start?

Selling a business is a big decision and involves careful planning and preparation.

Before starting the process of selling your business, it is important to have a clear understanding of your goals and reasons for selling. Because your business is an entity you’ve nurtured from its conception, your attachment to it will be significant, and so will the reasons for your decision to step away. In light of that, for a successful sale, it’s vital to understand the ‘why’ first: what will you do next, are you ready to retire, or do you want to move on to a new venture?

Destined provides expert business brokerage and business saleservices, guiding sellers through valuations, marketing, buyer identification, and negotiations. We help turn your business sale into a smooth, successful transaction. Click here to contact us now

Once you have determined your strategic destination in this endeavor, here’s how to start.

Determine the value of your company

Before looking for potential buyers, it is important to determine the value of your company. This can be done by conducting a professional business valuation or seeking the advice of a trusted accountant. It may also be helpful to hire a mergers & acquisitions advisor to assist with the selling process. Additionally, make sure all paperwork is in order before starting the selling process. This is a specialist service that we offer  – click here to find out more about our business valuation services

That last point creates a smooth segue into the next step.

Clean up your business financials

It is important to make sure that your financials are in order. This means ensuring all expenses and revenues have been accurately recorded on an accrual basis, a balance sheet is available, and all necessary documents such as tax returns are up-to-date. Prospective buyers will want to see these financials before making any decisions, so getting them organized early on can save time and facilitate a smoother transaction. Additionally, having clean financials may also increase the value of your business.

Prepare your exit strategy in advance

It is important to have an exit strategy in place before starting the sale process. Some possible exit strategies could include selling the business to another company, passing it on to a successor in the company, or bringing in a private equity firm as a financial and strategic partner. By preparing for these possibilities beforehand, you can ensure a smooth transition and protect yourself financially.

Additionally, having an exit strategy can make your business more attractive to potential buyers. It shows that you have thought through all aspects of the continuity of the business and increases confidence in the future success of the company. Don’t overlook this crucial step in the planning process. Prepare your exit strategy and safeguard your future success.

Boost your sales

But how? First, revisit and re-analyze your customer base to refresh your understanding of their needs and any potential shifts in the industry, where your products or services is concerned. This will help you identify how to effectively market to them. Additionally, your sales channels including staying active on social media and building a strong online presence can attract new clients and keep current customers engaged. Finally, consistently review and improve upon your sales process to ensure maximum efficiency and success. By implementing these tactics, you can boost your sales and drive more profit for your business – a very attractive look for your company in anticipation of its sale.

Preparing documents

Next, it is important to prepare all necessary documents and financial information for potential buyers. This includes creating a comprehensive list of assets, updating legal contracts, and organizing financial statements.

Find a M&A Advisor

Finding a reputable and experienced mergers & acquisitions advisor like Destined can be crucial in successfully selling your business. At Destined, we specialize in mergers & acquisitions, expertly handling everything from marketing your business to negotiating with potential buyers, and managing all the intricate details. With our proven track record, we’ll ensure you’re partnering with a team that has experience selling businesses in your industry, understanding market trends, and positioning your business for maximum value. Our transparent approach also means you’ll have a clear understanding of any fees or commissions upfront.

Finding a buyer

Destined’s expert team is dedicated to finding the right buyer for your business. With deep experience across various industries and knowledge of current sales, market and industry trends, we’ll ensure you’re connected with buyers who see the full potential of your business. We guide you through critical steps like updating valuations and reviewing contracts, preparing your business for a smooth sale.

Whether you’re selling to another company or private equity, Destined will help you understand the pros and cons of each option, helping you find the best fit for your business sale goals. Our strategic targeting of potential buyers increases the likelihood of selling your business through a profitable sale.

In what can feel like an overwhelming process, partnering with Destined means you have a trusted business sale advisor on your side to help you secure the right buyer at the best price.

Handling the deal structure

The fiscal side of the deal is still ultimately the bread and butter. It is important to consider your financial needs before selling the business. Will you sell all or just a portion of the company? Will you receive payment upfront? Will there be a seller note? Can you roll-over some equity to allow you to capture more wealth as the business grows after you sell?

Next, carefully consider your buyer pool. Are you open to selling to a larger corporation or a private equity firm? This decision may impact the price and structure of the sale.

Overall, preparing to sell your business takes careful planning and consideration. With proper preparation, you can maximize profits and set yourself up for success in the future. It stands to reason then, that having the right partner in the process is crucial.

Destined is that partner – let’s get in touch, click here.