Creating a profitable company out of nothing is such an accomplishment. But as proud as you may be of their achievements as a business owner, sometimes the next step is to sell. Whether you want to sell because you want to focus on a new business opportunity or to retire and focus on your tan, the most critical next step is preparing for the sale.
Selling a company is not like selling a car. You can’t just prop a “for sale” sign on the back window and expect buyers to come calling. Here are three key steps to maximize profit when selling your business.
- Get your books in order.
- Your financial statements are vital in determining your company’s financial health. Interested buyers will want to see several years’ worth of financial information. If your accounting policies, practices, and preparations are less than impressive, now’s the time to seek professional accounting help.
- Get a business valuation.
- Do you know what your business is worth? You will after you get a business valuation. Similar to an appraisal of a home, a business valuation can give you a realistic idea of what your business is worth. A business appraiser inspects and analyzes your entire business. Based on those findings, they will give you an idea of what you can expect to net from the sale.
- Keep your eye on the ball.
- Don’t become so focused on the sale that you allow your day-to-day operations to suffer. Continue doing what you’ve been doing that’s made your business worth buying. Cherish your growing group of customers, so they remain loyal to your business. Stay committed to your team, so they don’t consider looking for a new job. In short, run your business as if it’s business as usual.
Business owners contemplating a sale need to consult with financial experts like Miami CFO. Our financial professionals are skilled at helping you get the very best price when it’s time to sell your business.