Just as enhancing the value of your company is an ongoing process, so is preparing your company for sale. As with any planning endeavor, the key is implementing strategies that will have the greatest impact. VERCOR professionals have a wealth of information available to assist you in preparing your company for maximum sale value. The following data will help you start the process:
- Prepare mentally and emotionally for the process. The business sale process is lengthy with many highs and lows.
- Shore up the overall reputation in the community and industry. As a result of positive reputation, you can attract higher quality employees, win customers more easily, and attract better service and terms from vendors.
- Rate your company’s performance in key areas, such as profitability, growth rate, customer diversification, return on investment, and management team development.
- Evaluate the condition and appearance of tangible assets. This simple, yet effective, step is critical to the impressions of potential buyers. Does the business show well? Is it attractive in appearance? Is the facility clean, painted, and bright? If the office is cluttered and unprofessional, a buyer might assume the business is unorganized is unprofessional.
- Conduct an internal due diligence check annually to ensure key corporate, operational, financial, and legal information are in order.
Is there a perfect company – one that is 100% prepared and has no weak spots? Of course not – every company has deficiencies. In order to maximize your selling price, VERCOR helps prioritize the most important areas to address. For other factors that prepare your company for sale, click here.
5 Things Every Business Seller Should Know
Don’t wait until you are forced to sell for any reason, whether financial or personal.
Plan ahead carefully by cleaning up the balance sheet, settling any litigation, tackling any environmental problems, and by gathering in one place all pertinent corporate documents.
Remain with the company in some capacity after the business sale to get a better price.
The trend is for sellers to assume they will retire after selling the business. Many buyers will pay more to have the seller stay aboard, thus helping to reduce their risk.
Realize a Buyer Will Not Appreciate the Work That Went Into Building Your Business.
Unfortunately, buyers look at your business simply as an investment. Neither they nor their sources of capital (banks, investors, etc.) have any way to understand, appreciate, or value the blood, sweat and tears that you put into building it. Try not to take it personally.
Buyers Love it When Your Represent Yourself.
Few sellers are experienced in business sales or valuation. All sellers are emotional when it comes to selling their “baby”. No seller is objective. Business sale advisors have a tool kit of options built from years of experience.
Don’t Take Your Eye off the Ball.
Selling a company is full time task. Running your business is a full time endeavor. Exiting your business is one of the most significant events in your life. Take advantage of all the resources available, and get help from a professional business sale advisor.