Selling a business can be one of the most important events in a business owner’s career. It’s a high-stakes transaction that has the potential to yield great rewards financially and emotionally. However, selling a business also can be a complex and mentally draining process. Even the most successful and experienced business owners may find themselves unprepared and unequipped. Before you begin the process of selling your company, these are a few simple tips to make sure you’re ready.
4 WAYS TO PREPARE FOR A SUCCESSFUL SALE
1. Get debtors and creditors in line. Potential buyers use the numbers you provide to calculate their potential future cash flows and working capital. For this reason, a history of customer slow pays may discourage them from looking seriously at your business. Consider taking payoff settlements on open credit accounts or eliminate open accounts for slow paying customers.
2. Update facilities and equipment. Make sure your workspace is running at optimum efficiency and that you’ve made necessary repairs in offices, warehouses and factories. A neat, well-maintained appearance, which also includes landscaping around facilities, shows potential buyers that your company is successful. Don’t Wait! Upgrade internal systems and invest in technology and other upgrades. Upgrading systems and technology will create efficiencies that build value in the company and put money in your pocket.
3. Document your company’s policies and procedures. This will help facilitate a smooth transition in day-to-day operations when the sale is complete. If you don’t already have one, create a procedure manual that describes best practices in running the business.
4. Retain key employees. Losing critical employees during a sale can be a deal breaker because they often are integral to the new owner’s success.
INCREASE VALUE NOW
The process of selling your business can be complex and arduous. But taking these steps can help increase the value of your business to potential buyers and even translate into improved profits while you’re waiting to sell your company. When you do decide it’s time to sell, call Gateway Mergers and Acquisitions at (972) 219-6961.