When it comes to selling your business, the trick is to get as much as you possibly can. For some business owners, a sale can be a lucrative proposition while for others it can be less so. A multitude of factors come into play when you are trying to set and obtain a certain sale price, but there’s one thing that can make the most difference between receiving a fair amount for your enterprise and selling for more than it’s worth.
That thing is preparation. Going into this transaction with all of your ducks in a row, so to speak, can not only get you the money you’re seeking but it can also make you significantly wealthier than you might have anticipated. Whether you try to do this on your own or work with a business broker chandler az, there are some critical steps to take in order to make your business attractive to buyers. Attractive enough that they will pay you a higher sum than you might have received initially.
Establish Your Reasons Why
This is a sale. You need to be a fantastic salesman. One of the first, if not THE first, questions you will be asked by any and all potential buyers is: Why are you selling? The answer you give doesn’t necessarily need to be the actual reason why, but you do need to be honest and upfront about your intentions.
Just know how to “spin” your answer in such a way as to suggest that you don’t need to, nor intend to, take just any price that is offered. Perhaps you are ready to retire or you are pursuing other opportunities that you wish to entertain. Maybe you know the value of this business and you’re ready to reap the rewards of everything you’ve worked towards so far.
Know When to Sell
If you want to get more for your business, don’t sell when things aren’t going well. Put it on the market when you are turning a significant profit and the company has a bright and exciting future. Think about it, if you were looking to buy a business, would you want to pay top dollar when it’s having difficulty trying to compete in the marketplace?
Of course not, you want to sell when your business when it’s doing extremely well. Otherwise, you are giving the buyer the advantage and you are left at their whim and their low offer.
Identify the Assets
When you are selling the business, it’s important to know what you are planning to sell and what the buyer is going to receive for his or her money. That means deciding which assets are going to be part of the sale.
Delineating what will be included in the sale not only helps the buyer submit a proper offer, it also allows you to sell the business properly in the most attractive light. So decide early on if the physical assets are part of the deal or if the sale includes the entire company in full.