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.
