You have made a decision to sell your business. Maybe you want more time for family, or you have a need to unload this business prior to the market no longer being in favor of you, or it is time for retirement. There are ways to prepare to sell a business, ensuring you are able to find someone willing to purchase your business.
Determination of a Business Valuation
Prior to selling any business, you must first determine its market value. For businesses that are privately held, they are valued based on earnings and annual revenue, combined with physical assets, and deducting any debt owed. This total should also figure into with existing partnerships and patents.
Confidential Business Review Preparation
Before you sell a business, or speak to any prospective buyers, a Confidential Business Review needs to be prepared. This plan shows an outline of main detail in which buyers would be requesting. Such requests include a financial statement overview, businesses history, products, and operations, and the businesses potential opportunities and challenges.
Different Types of Buyers
There are several types of buyers in the market including strategic, financial, and inside. When dealing with these buyers while attempting to sell a business it can become quite difficult trying to understand how to deal with each one and in what ways they differ. Business brokers have experience with each type of buyer, with knowledge of what each buyer wants.
Business Brokers Ideal Way to Sell a Business
With a business broker, your business valuation and memorandum preparation is prepared for you. They take the difficulty out of selling a business.
For more information, please contact Evolution Advisors. Or contact us by phone at 916-993-5433. You can also connect with them on Facebook.