Selling your business is a complex venture which involves various considerations. It is necessary that you enlist a broker, accountant, or attorney as you proceed. Whether you will earn profit or not entirely depends on your reason for the sale, the strength of the business’s operation, the timing of the deal, and its structure.
Selling your business will consume much time. Once the deal completes, you need to determine various creatives and innovative ways to handle the profit.
Here’s the only 7-step guide you need to sell your business:
Evaluation of the pros and cons of selling your business and determining whether it’s worth it at this stage or not is the very first step to take. Among the most common reasons for marketing your business is retirement, partnership disputes, illness, or the death of a significant partner. However, selling the company might not be the best option, mainly if you decide to make a hurry.
Get Your Timing Right
It is not practically possible to sell your business overnight for a reasonable price. Due to the complex process of selling a business, you’ll need to start your sales preparations in advance. It is essential to get your timing right so that you get the best return on investment.
Seek Professional Valuations
Valuations for real estates, such as residential or commercial premises, are complicated. Still, when you’re selling your whole business, other factors like your annual turnover influence your business’s overall value. To handle the complexities of a business’s valuation and to ensure you determine a reasonable asking price, it’s wise to hire a professional.
Choose a Broker
Preparing your business for sale is a time-consuming task, so it is wise to hire a broker so that you can dedicate valuable time and effort to continue the operation of the business while it’s already on the market. Hiring a broker will also allow you to carry out the sale more unobtrusively, to have a better chance of getting a reasonable price.
Looking for a Business Broker in Jacksonville? Hire Julie Brigman and draft an agreement with her to make the best deal.
Prepare the necessary documents far in advance as there’s a fair amount of bureaucracy involved in selling a business. Firstly, you’ll need to gather financial statements and tax returns of the last three years and go through them or take the advice of your accountant to ensure all papers are in order. Other vital paperwork includes contracts for leased premises, proof of ownership of assets you own, and any business debts. Make sure to create copies of these documents, as you’ll need to present them to potential buyers, evaluators, and lenders.
Find a Buyer
Once your preparations are complete and ready to put your business for sale, it’s time for the broker to do their work. However, if you’re selling on your own, you’ll need to dedicate much time to advertising your business and reaching out to potential buyers. The sale of business takes at least six to 24 months, so be patient. At the same time, you’ll still need to keep running the business perfectly since you’ll still be the boss.
Manage the Profits
When you’re waiting for a sale, start thinking about how you will manage the profits. Most importantly, you’ll need to take care of the tax obligations, if you have any, as it associates with accruing a large amount of wealth in one go. For this reason, it’s best to approach a financial advisor who can help you to invest your money wisely while losing the minimal amount possible to the taxman. You’ll also need to focus on the long-term benefits of reinvesting your cash to provide long-lasting financial security for you and your family.
The Bottom Line
Selling your business is time-consuming and, for some people, an emotional venture. The help of professionals and an excellent reason to sell it can ease your burden.
Now, if you are finally ready to sell your business, contact Julie Brigman, the best business broker in Jacksonville.