A number of factors come into play when it comes to determining the profitability of a business sale. These factors include the business structure, the sale timing, business operations and even the purpose of sale. Here is a simple business selling process you can employ to make the most of your business sale;
- Define your business exit strategy; it is very important for you as the owner to understand the sales requirements, business valuation expectations, exit alternatives, tax consequences to name but a few.
- Determine the value range for the business; how much is your business worth? Valuation of the business is important for both the seller and buyer. Valuation ensures informed negotiations without either party having to be taken advantage of. Valuation can also help the owner look for ways for value enhancement of the business before making any deals with the buyer.
- Prepare and make available any documents that may be required for the sale of the business; these may range from tax returns to financial statements and lease paperwork among others. While at it, you should make copies of the important documents that you will give the potential buyers.
- Take your time to choose a buyer; selling a business can take some time and often it may involve meeting different potential buyers with different deals. In choosing a buyer, look for someone that qualifies for financing among other important fulfillments. Once a buyer is chosen it is important to put the sale agreement in writing.
- Know how to handle the after sale profits; having successfully sold your business, it is important that you familiarize yourself with any after sale requirements like tax payments.
Overall, the process of selling a business should not be that complicated if you know what you want from the sale.