Last Updated on Dec 24, 2019 by James W
If you’re selling your business, you may think that you have to either sell it fast or you have to hold out for maximum value. You may believe you can’t do both, but the reality is that you can achieve both objectives. It comes down to being prepared and ensuring you have everything ready on your end, as the seller, to make a transaction go smoothly and quickly.
The following are some of the things to keep in mind if you want your business to sell quickly and at the highest possible price.
Go Over Your Accounting Records
Your accounting records are going to show the value of your business and they’re going to be what ultimately appeals to buyers. You want your records to be up-to-date, accurate, organized and truly reflective of your business. If your records are updated and meet the current acceptable standards for accounting, then buyers are going to require less time to go over them, which can mean a faster transaction. Your accounting records should include your yearly budgets and forecasts, cash flow information including forecasting, and the specific metrics relevant to your business.
Provide Documentation of How Your Business Operates Day-to-Day
Something else you can do to appeal to buyers and speed-up a potential sale is to outline how your business functions daily. Buyers are going to want to see your processes and procedures, ranging from the administrative tasks in your business to the contracts you have in place with employees and vendors. If you have certain tools that help you automate business processes, outline what those are and how they’re a strength to your business currently and will continue to be in the future.
Having your procedures and processes clearly outlined is going to appeal to possible buyers because it’s going to show them what the future might look like if the deal goes through. It can boost motivation, which can reduce the amount of time it takes you to sell and increase the amount you’re able to receive from the sale.
As well as your procedures and processes, consider putting together a forward-thinking marketing plan. You want a potential buyer to be able to envision what their future might look like if they purchase your business. If you have a standout and attainable marketing plan, it’s going to boost the confidence of the buyer and allow them to see the bigger picture.
Work with a Broker
Working with a broker is critical if your goals are a fast sale for maximum value.
There are reasons for this. First, a business broker can bring together all of the logistical elements you need for a speedy sale. A business broker is experienced and can help you speed up the process on both ends.
Brokers have an understanding of local market conditions, and also larger conditions like general economic factors that will impact your company valuation. Brokers can also tap into resources to find qualified, interested buyers while still maintaining your confidentiality. Every buyer is going to have a different set of motivations that are going to lead them to want to buy your business. Brokers can consider those.
Finally, due diligence is something that will have to happen, and if your broker is working with you, you’re less likely to face issues that could end the deal. You want as few obstacles as possible, and brokers work to minimize potential obstacles before they ever actually arise.