There are many reasons you might sell your business, including to capitalise on your investment and start a new business or another venture. Whatever the reason, the decision to sell your business does not come easily, and as the business owner, you want to make sure that you get the most out of the sale.
The first step in getting your business ready for sale is to really identify what product or service you are selling and put a value on it. Further, you need to make sure any intellectual property has been identified and is appropriately protected for the good of the business, and the sale.
There are four things you need to have when selling your business:
- ensure the business is adequately and appropriately resourced to allow an orderly exit from the business
- reliable and accurate financial information
- secure contracts with customers and suppliers
- systems and processes in place for operating the business
While these might seem like obvious suggestions, and essentially the foundation for any successful business, this is not always the case. Bringing the business up to the right level before sale will help ensure the best outcome for you as the seller.
Once you are confident that this is done, set up a data room for potential purchasers to conduct due diligence on the business. Finally, take the time to understand the likely buyers and their willingness and capacity to complete a deal.
Selling a business is a process that requires careful planning and consideration. It is important to methodically go through the sale process to ensure the best result, rather than making emotional decisions. This can be difficult as many business owners are emotionally invested in the outcome. To avoid this mistake, take a step back and look at the process objectively.
For more information about this article, please contact your nearest RSM Office