Coming to the decision that now is the right time to sell your business is much easier than developing a nuanced exit strategy and actually handing over the keys to a new owner.
Planning in advance, though, greatly reduces the hassle of selling your business and ultimately fetches a much higher asking price from potential buyers.
Although it may be tempting to expedite the process of selling your business by entertaining any reasonable offer, you’ll want to avoid this temptation and heed the suggestions outlined below to get the best deal.
Consider Your Timing
Small business owners decide to sell their businesses for a number of reasons. The most common reasons are retirement, a sudden illness, overwork or even disputes among partners.
Another reason that small business owners are eager to hand over the keys is that their small business is no longer profitable. While selling off your small business might be tempting during a rough period, some business owners come to regret this decision because it undercuts the highest asking price.
Enhancing recent profits and having stable income figures to present to potential buyers, by contrast, is a great way to get the highest price for your small business…and fast.
Making a timeline for the sale of your small business also allows you to create a transitional plan for the future buyer while allowing you time to fortify up your business’ finances.
Partner Up For Success
Even though partnership disputes can be a leading reason for small business owners wanting to transfer ownership, partners can also be a tremendous asset. Beyond that, a reliable partnership can greatly facilitate an efficient and mutually lucrative sale of your small business. How?
A partner who’s willing to take a more proactive role in the daily operation of your small business will free up your time to advertise your business and secure a sale.
Just make sure to consult a lawyer and sign a partnership agreement so that assets are amicably divided when you and your partner finally transfer ownership.
Obtain an Accurate Valuation
Having an appraiser come in and provide you with an accurate business valuation can ensure that you neither sell your business at a too high nor too low of an asking price.
Some small business owners aren’t really sure what their business is worth because ownership is divided or all of their assets haven’t been accounted for. An appraiser can cut through the confusion and give you a detailed explanation of your business’ worth.
Getting a business valuation does two things: 1) it provides you with a very good ballpark estimate of your business’ worth and, 2) gives buyers more confidence that the future deal is a win-win.
Sell Your Business to Your Employees
This is one of the quickest (and safest) ways to quickly sell your business. As a bonus, you reward your loyalist employees and do your best to guarantee the future success of your small business.
An employee stock ownership plan is a quick way to transfer ownership to your employees. An employee stock ownership plan also provides immediate tax benefits and the long-term possibility of taking a more active role in your business.
Hire a Broker
A broker can allow you to continue working and bolstering the finances of your business while the broker attains the highest possible price for your small business.
Brokers can prepare a sales agreement, offer buyers incentives like seller financing and advertise your small business through the right channels.
Begin the process of transferring ownership of your small business by contacting the professionals at Sunbelt Atlanta today.