How Do I Know if I’m Ready to Sell My Business?
Selling a business isn’t a decision that should be made in the spur-of-the-moment. You may have personal, financial or professional reasons you want to sell your business right now, but there are numerous of things to consider before you list your business for sale.
To know whether or not you’re ready to sell your business you need to ask yourself these 3 questions:
1) Is My Business Ready to Sell?
Most business brokers recommend you begin planning to sell your business two years in advance of putting it on the market. You’ll need two or three year’s tax returns showing maximum profitability. Make sure your books are in order by having an accountant or a bookkeeper review them. During the discovery process your accounting records will come under scrutiny. It’s best to get them in shape early than have to rush at the last minute to get the proper documents over to a potential buyer.
2) What is the Value of My Business?
Meeting with a Certified Business Intermediary can be an invaluable tool in order to not only determining the value of your business, but also in selling your business. Your broker can utilize several different valuation approaches and either has first-hand industry specific knowledge, or knows how to get the insight on other businesses in your industry and for how much they are selling. Plus, your broker has a network of connections that are looking to buy a business.
3) Is My Timing Right to Sell My Business?
If your business is in a declining trend, it may not be the best time to sell. Selling at the top of your game is ideal and knowing where that tipping point lies is key to a profitable sale. You should also look at market conditions for your industry. Having insight into what the market is doing, specifically in your industry is instrumental in making the right decision on when to sell. Again, a business broker can advise you in this arena.
Selling your business can be an emotional time. Often business owners are very attached to their business as they have grown them from the ground up or have nurtured them, like children, through the years. The employees have become part of their family and the owner, in essence, lives and breathes the day-to-day operations. Finding the right buyer for your life’s work may be key to really being able to let go and for you to take the next step into retirement or even to buy another business and start all over again! Let a Certified Business Intermediary help make that happen for you.
Cress V. Diglio, Florida Business Broker
Cress V. Diglio is a Certified Business Intermediary (CBI), a Merger & Acquisition Master Intermediary (M&AMI) and the past chairman of the International Business Brokers Association (IBBA). Call Cress today for complete transaction support and expertise, 888-984-4208, or visit https://floridacertifiedbusinessbroker.com.