Considering a Sale of your Business?
5 Quick Tips for First Time Sellers
1) Get a third party opinion of value. A broker who provides comparable sale information is fine or any accredited valuation source which a bank lender would accept will do as well. I can assist you with this at no charge-if you engage me to represent you- or refer you to an outside source.
2) Make sure your books are in good order and that your tax returns are all filed within the deadlines. Buyers and lenders will need to see your last three years business tax return and a year to date income statement in order to make an affirmative buying decision. I can provide you a number of CPA and bookkeeping references, if you need assistance in this task.
3) Don’t shy away from considering carrying a note for a qualified buyer for a portion of the purchase price. It will help you achieve a higher market price and enhances yours and the business’ credibility in the eyes of buyers. There are safeguards that need to be in place, however. I can give you more details on appropriate standards and requirements.
4) Have an experienced transactional attorney available to you to review legal documents at the appropriate time. I can provide you with some suggestions on how to most effectively and economically utilize an attorney in this process and even provide you with some references to attorneys with small business transactions experience, if needed.
5) Although you probably have a clear picture of the most ideal buyer, you should make sure the business is broadly-but discretely- exposed to any and all prospective buyers through a comprehensive marketing campaign. A well written Confidential Business Review is critical to this effort as well. I can provide suggestions in both of these areas.