Selling a Business
Selling your company may or may not be a joyful day for you. Perhaps you are happy to get out from under something you didn't like. Maybe you've landed a lucrative deal and are ready for a break.
Whatever the case, you will want to be sure to think through the situation carefully. You don't want to leave money on the table if you don't have to.
Leaving your company can be a horrible feeling. Make sure this is the right decision in your case.
How to Prepare to Sell
Before you sell your company, there are several steps you want to take in order to maximize resale value. Keep in mind, customers care most about your company's ability to generate a profit.
If its sales are stagnant, their interest in purchasing will decline. Be warned - it can take up to a year to get a company ready to sell.
Be sure to eliminate expenditures that do not directly add to your sales growth. This may not be a large amount of money, but every little bit helps.
Consider ramping up your marketing and sales efforts to increase growth. Work with customers to sign long-term contracts.
Be sure to have a plan in place for generating future growth. Demonstrate new products, new markets, and cost-cutting measures that will add value to your company.
Perhaps work with a professional consultant or broker. He or she may know people who are willing to pay a higher price for your company.
Be sure to have your financial books in order. Nothing looks worse than someone who is disorganized and cannot produce essential information in a timely manner.
Make sure you have all contracts, patents, insurance policies, leases, and bank statements available. Produce these in a timely fashion, and you will build trust with the buyer.
Analyze businesses similar to yours that are for sale on the internet. What types of prices are they charging? Where are they located? What is their cash flow?
The internet makes it much easier to research the market and learn how to position yourself. Use it to your advantage.
Do try to sell during a time when things are going well for your company. Not only will finances look strong, but your confidence and mood will be strong also. Buyers pay confident sellers more.
Don't Try to Value Your Business Yourself
Valuing your business on your own is difficult. Not only will it require large amounts of time, but it takes you away from increasing profitability.
If you value your company on your own, sellers will be skeptical. They expect you to be overly optimistic and asking for an unrealistic price.
Instead, have a professional perform the valuation. Not only will he be more accurate than you, but he's also objective. An objective source is much more credible to outside buyers.
To sell a business online in Australia or with a broker takes a substantial amount of time and work, just like all other aspects of running a company. But, the more time and effort you give up-front, the better price you receive in the end.
About the Author
This Wiki was written by Andy White, CEO of Biz Trader .