How to sell a Business quickly
Selling a business can seem like a very overwhelming and complicated task, but that doesn’t mean that this is always the case. In fact, sometimes it can actually be simpler than you would expect; especially if you have a better understanding of the overall process, and what you can do to make it quicker and easier for all parties involved.
Understanding how to get from start to finish is often an important part of simplifying everything, which is why it can be a wise idea to take a look at the different stages involved. Here are the key steps for a faster sale:
1 – Preparing to sell
There are a variety of things that can come under the umbrella of “preparing” for the sale. Essentially, this stage is when you get everything together and in order ready to present to buyers – and while this may seem like an obvious thing to do, there are so many elements that can be overlooked.
Find all the relevant documents, ensure that you have proof of your last 3 years of trading, and obtain an adjusted balance sheet (if you don’t have all of this, and any additional paperwork that you may be asked for, you should be able to get copies from your accountant).
2 – Finding the value of the business
When you are fully prepared, you’ll need to do one more thing before you can put your company on the market – get an appraisal to find out how much you should expect to get from the sale. At this point in time, it can often be worth getting the help of a professional business transfer agent to ensure that you get the right price. Since there are different problems that can come with both undervaluing and overvaluing, their experience could help you properly assess just how much it’s worth.
3 – Advertising and taking care of viewings
With a good idea of what to use as your asking price, it’s important that you feel ready before moving on to marketing your company. Mainly, this is because it can be vital to be professional throughout the process; in both running your firm, and finding prospective buyers.
There are many sites where your organization can be marketed, so having an expert’s advice and opinion can be useful here too, as well as with handling enquiries and viewings. Book them in for a time that’s suitable for you, taking into consideration that you will also need to run your business to keep its performance up and attract more potential buyers.
4 – Negotiating for the final price
When you find someone who’s interested in purchasing, you may find that they have a different value in mind, and this is why it’s important that you negotiate with them to get the best deal. You can either do this yourself or leave it to an expert – often, a professional business transfer agent will be highly skilled at negotiating and proving the worth of your corporation, so it generally pays off to have one on your side.
Due diligence is a time-consuming part of the process that can be crucial for all parties, as it reassures buyers that the company is worth the agreed price. If you prepared all the necessary information earlier on, you should find that the transaction will be much faster overall.
5– The closing
Once the negotiations are over and everyone is ready to make the deal official, contracts can be signed and the sale closing can be scheduled. It’s often a good idea to have a formal handover, and to properly introduce the new owner to employees, stakeholders, etc. to avoid having to answer any questions in the future.
Aside from all this, there are typically a few things that can be done to help boost value and speed everything up – as well as make it simpler and more beneficial for your unique requirements. Here is some advice that might help you along the way:
- Consider whether a confidential or ordinary sale is best, as each has their pros and cons
- Hire a professional business transfer agent to assist you through the process, as they can make a big difference overall
- Before going to the market, make any necessary repairs or improvements to boost the attractiveness of the establishment
- Be honest with buyers – if you’re not, it could cause a lot of hurdles later on, potentially costing time and money
- Be open to alternative payment methods, as some could offer you more cash in the long-run
Please note that the information provided on this page:
- Does not provide a complete or authoritative statement of the law;
- Does not constitute legal advice by Net Lawman;
- Does not create a contractual relationship;
- Does not form part of any other advice, whether paid or free.
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