You will have an easy time selling your business if you take proactive measures to make the entire process a success. In addition to retaining expert help, you need to present the company attractively.
One the most common queries to business consultants often falls along the lines of, “I’m selling my business in Provo but am not too clear on how to get the best deal. Can you help me?”
That might be a painful truth to admit, but it could potentially net you tens of thousands more when you finally sell the business. Trading an established company is a process that needs careful handling to get the best results. You need to consider and address a myriad of factors before you settle on the final price, which often calls for expert advice.
Set a Realistic Timeline
You need to know that the process of selling a business is more of a marathon than a sprint. Therefore, you shouldn’t expect to close the sale soon after putting it on the market, although this is not a hard rule. In some cases, it might take several months or even years to offload a small business.
You might have a few offers only for them to fall apart halfway through. Long-term planning increases your chance of selling the company successfully. It will let you keep a sales portfolio, which you can present to prospective buyers prepared to make an offer. It also means that you’ll never be caught flat-footed and sell your business for less than it’s worth.
Get an Evaluation
Pricing is a major selling point for investors who are often out to make new acquisitions at a steal. To steer clear of potentially low offers, have an expert assess the value of your business. Typically, the valuation amount will depend on the industry and the state of the market. An evaluation will give insight into the business profitability, as well as the overall business performance.
The evaluation process offers a look into your strong points, shortcomings, and opportunities. You can use these findings to improve your business position and grow your asking price. Typically, you can ask for between one and four times your annual net profit depending on the size and age of your business.
Retain Expert Help
As is the case with any transaction that spans both the financial and legal worlds, you’re better off not going at sales process alone. You might run into severe headwinds that ruin your chances of success or cause you to incur hefty losses. However, this doesn’t mean that you hire the first business broker you run into.
You need to be sure that you’re hiring a skilled business consultant who will represent your interests to the fullest and get you the best possible deal. You also need to make sure that their fee is reasonable and won’t undercut your profit.
Selling an existing a business is an undertaking that calls for careful planning to avoid running into problems. In addition to retaining the services of a credible expert to help you with the process, you need to go the extra mile. You need present and position the business in a manner that makes it attractive to the prospective buyer.