Preparing To Sell Your Business to the Right Buyer

So you have worked hard and are very proud of the enterprise you have established.  For people like you, the business is already a part of who you are and a point of pride.  The decision to sell the business will have an entirely different from someone who wishes to sell for a profit. For people who are considering retiring and selling the business is the only option, it is a good idea to prepare the business in order to attract a wide variety of prospective buyers.  The more prospects you attract the better chances of finding the right person to take your place. 

·         Make yourself obsolete – Make sure that the business can run on its own.  Standard operating procedures should be in place and the best way to do this is to document everything.  Documentation is a very useful tool in daily operations, whether it is manufacturing or trading or in sales.  There should be an existing database from clients to inventory or just how things are done.

·         Make sure your financial documents are up to date – Businesses are evaluated based on numbers.  Most buyers go straight to the audited financial statements and as a seller; you have to make sure they are as attractive as it can be.  There are businesses that minimize their taxable profits but while it may be good for your business, it does not give the buyer an actual picture of how your business is doing.  So prepare your financial portfolio 2 years ahead of time and start recording your actual profits.

·         Create a business plan as if you are not about to sell it. – This gives your buyer a better view of their future if they decide to purchase.  If you have this ready, it is easier for them to decide.  They may make their own feasibility study but your input will definitely speed things up.

·         Feature your core values in your business plan – if you really want to attract a buyer who share the same principles as you have established, this feature in the business plan is sure to attract the ones whose business objectives are aligned to yours.  This would ensure a better transition a as if management and ownership has not changed especially if you wish to secure the tenure of your existing employees.

·         Sign up with a business broker who values your objectives as much as they value the sale - You should keep this in mind especially if you are selling primarily to ensure that your business is intact when you retire.  Letting go difficult but if you know you are leaving everything to the right people, it would not be such a big deal at all.