Selling a business is much more than just a business transaction – it is among the most important life transactions you’ll ever make. For whatever reason you’re selling the business, there are several items that need to be considered.
Plan Ahead of Time
It can be challenging to make the best out of a business sale if you limit the time needed to properly plan for the sale. We advise that you start thinking about the different aspects about your business well before you decide to sell it. It can take years to craft the best sales plan – one must get the appropriate accounting processes in place, put together a management team, and find the best investment banker.
Work With Experts
To avoid a negative financial or psychological impact, you should hire a qualified advisor to assist you with the process. This will benefit you in several ways:
It’ll save you significant time in preparing documents and negotiating with buyers.
They will bring with them high-level experience in handling intricate issues about the sale process.
Organization is Essential
The appearance of files, reports, records, and processes can have a great impact on how prospective buyers view your business. In that regard, you should be organized to portray the image of a well-managed business.
Learn the Basics of GAAP
You have to speak the language of business professionals by ensuring that your financial statements are compliant with GAAP (Generally Accepted Accounting Principles). There’s nothing that can hurt your integrity more than financial results that are glaringly different when prepared through GAAP.
Assign Key Leases and Contracts to the Buyer
Oftentimes, the landlord won’t assign the lease to the new owner. It’s a good idea to start reviewing your main leases and contracts years before the sale, and try to re-negotiate the terms to avoid conflicts with a key customer or landlord.
Keep Wooing the Buyer until you Close the Deal
You need to realize that there’s so much that can distract or dissuade a buyer from the deal even after signing the letter of intent. The buyer may even get better deals. Thus, it is imperative that you keep close contact with the buyer until the check clears the bank.
Review the Sale
In every kind of purchase or sale, sometimes the buyer may get cold feet. It is a good idea to reassure the buyer that the sale is a deal that will benefit everyone involved.
You are The Ultimate Decision Maker
While it usually feels safe to depend on lawyers and other experts, it is imperative that you don’t let them control the better part of the process. You can ask them the necessary questions, but you have to make the decisions about how to you want the transaction to take place.
Now that you understand how to go about selling your business, consider getting a professional who’ll help you with the process. Having been in business since 1978, Sunbelt Atlanta has the necessary experience to help you get the best deal for your business and its assets. Contact us today!