Selling a business can be thrilling and financially rewarding event. As a business owner you must be prepared and take specific steps to ensure that the sale goes smoothly.
Buyers will want to see such documents as your financial records describing liabilities and assets as well as tax return from the past three to four years. These documents will allow them to better understand the profitability of your company and the potential value. Having these documents ready can help speed up the process. Prepare a list with the equipment to be sold with the business, as well as any contracts or agreements. This will give buyers an accurate overview of the company prior to when they make an offer.
You should also assemble an inventory of potential buyers. This could include local rivals and companies in your industry that want to expand or enter your market, and even companies that are seeking to purchase your business in order to cut costs. Once you have a list, you can begin the sale. Before you disclose any information to potential purchasers, ask them to sign confidentiality or nondisclosure agreements.
Based on the circumstances, you may choose to remain as a part of the company following the sale or move into an advisory role. Consult your financial and legal advisors to determine the best course of action. This could include vendor financing as well as an earn-out or an ongoing transfer of ownership to employees who have been with the company for a long time.