5 Tips to Selling a Business
Here are five tips to selling a business:
- Why Are You Selling?
Most potential buyers ask why you’re selling the business. Common answers are anything from retirement to looking for a new adventure, or illness or death.
Some owners may be selling because the business simply isn’t as profitable anymore. This can make it harder to attract a buyer; however, there are many attributes that can make your business appear more attractive, such as consistent income figures and a strong customer base. A business broker can help you highlight those strong, marketable points to present to potential buyers.
- What’s it Worth?
Pricing your business is perhaps one of the most challenging aspects of selling a business. Known as a business valuation, the business’s worth should be determined by a certified and experienced business intermediary. They will insure that the price isn’t too high or too low. The valuation your broker creates will bring creditability to the asking price and can serve as a gauge for your listing price.
- What Documents Do I Need?
To sell your business, you’ll need to gather all financial statements and tax returns dating back three or four years. Have your accountant review these documents to ensure everything is in order. Additionally, you’ll need a list of all of the equipment that will be sold with the business along with a list of contracts related to sales transactions and supplies. Plus, if you lease the building your business is located in, you’ll also need to provide a copy of your current lease.
- How to Find a Buyer?
It can take anywhere from six months to two years to sell your business. Your business broker will be able to not only market your business but also bring qualified and interested buyers to the table.
- How to Handle the Profits?
After all those years of hard work, you’ve finally done it – you’ve sold your business. To protect the fruit of your labor, be sure to create a solid financial plan and learn about any tax consequences associated with the sale of your business.
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).
Whether you are looking to buy a business, sell your business or merge with another business, Florida Business Broker Cress V. Diglio has the experience to assist you in all facets of the transaction. Call Cress today for complete transaction support and expertise, 888-984-4208, or visit https://floridacertifiedbusinessbroker.com.