There are so many moving parts to selling you business in Tampa; it’s hard to keep up with them all. A business broker will help you with making sure that there is clear documentation of the terms of the sale. In general, there are four stages to selling a business: preparation, negotiation, due diligence, and documentation
Preparing to Sell My Business in Tampa
Selling your business in Tampa is not that different than selling a car or a house. Basically, you need to know what you are selling and how much money you are will to accept in the deal. You also need to prepare some things ahead of time when you sell your business in Tampa. For instance, you should make sure the books are in good order, the business itself is in good physical shape and that your business broker has everything he needs to advertise your business.
Negotiating and Selling My Business in Tampa
Once you’ve prepared everything to sell your business in Tampa, your broker will list it for sale. Interested buyers and brokers will want to discuss a variety of specific details about the potential sales transaction. For instance, when selling a business, they will want to negotiate the purchase price, the terms of financing and interest, representations and warranties and also, if you have a lease on office space, the lease itself.
Due Diligence is an Important Step When You Sell Your Business in Tampa
Once you have a serious buyer who has signed a confidentiality agreement and a letter of intent, they will want some time to inspect your business to make sure everything you have represented checks out. The inspection period gives the buyer the opportunity to inspect the physical state of your business including the building, equipment, inventory and employees, as well as the financial records, legal contracts and company books. In order to ensure a smooth transition for the new buyer, you want to make sure that you disclose everything up front when selling a business in Tampa.
The Types of Documentation Needed When Selling Your Business in Tampa
A purchase agreement is the primary legal document used when you are selling a business in Tampa. The purchase agreement details the specifics of the sale and mirrors the letter of intent. Depending on how you structure this transaction you may also need a bill of sale, promissory note, security agreement, stock transfer certificate, and company resolutions.
Tips for Selling a Business in Tampa
The first tip is if you’re thinking of selling a business in Tampa, take some time to gather all of the proper paperwork that potential buyers will want to review such as:
- Tax returns for the last three to five years
- Profit and Loss Statements
- Balance sheets for the last three to five years
- Bank statements
- Current lease information (is it transferable?)
- Insurance information
- Any licenses and permits
- A list of furniture and equipment
- Vendor agreements
Getting this paperwork together can be a time consuming part of selling your business in Tampa. Having it all together before you start working with a broker makes everyone’s job a bit easier when selling your business in Tampa.
The second tip to selling a business in Tampa is to work with a certified business broker. A business broker can do many things for you and can help make the process less stressful, for the simple fact, they have done it all before – many times.
A broker can not only help you with your valuation to establish your selling price, they can help market your business to find a buyer and they may also be able to assist you with your exit strategy.