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Preparing to Sell Your Business
May 5, 2008
You’ve reached retirement age and are ready to sell your business within the next year or two. Here are five basic steps you should ask yourself to ensure that your business is ready:
- What is your business worth? One of the first things you should do is obtain a realistic idea of what your business is worth from an objective, outside source. A professional valuation will give you a basis for gauging buyer offers and will give you an idea of what you can expect to net from the sale.
- Are your books in order? Buyers evaluating your business generally require at least three years’ worth of financial information.
- Have you consulted your financial advisor? It’s wise to speak to your tax advisor for help planning your financial future. Understanding your personal and corporate tax situation may also help you recognize your options with regard to deal structure.
- Have you organized your legal paperwork? Review your incorporation papers, permits, licensing agreements, leases, customer and vendor contracts, etc. Make sure you have them readily available, current and in order.
- Why are you selling? Buyers are always curious as to why a seller wants to exit a business. (If it's so great, why are you leaving?) Be prepared to articulate your reasons.
Posted by Shanu Singh Guliani on May 5, 2008 | Comments (2)
