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Friday 23 October 2020
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Five Tips to Prepare your Business Before a Sale

Five Tips to Prepare your Business Before a Sale

If you have decided to sell your business, it’s time to ramp up the hard work. This can include getting documents and ready so you can easily hand them to interested buyers. Also, you may have to ensure the smooth running of your daily operations. Now is the time to take a look at the things you have to cover to get the highest sale value possible. Consider the tips below.

Do your Research

Possible buyers will wish to see that every business document is in order. You will satisfy these buyers with top-shape tax records, articles of incorporation, contracts and leases. Also, ensure everything is ready because this reflects your business’ efficiency. Being able to show due diligence will let you appeal to buyers who want to do things by the book. Also, this provides reassurance at the right time. Operational manuals and human resource policies, as well as company accounts, must be current.

Prove that your Business is Performing

You need to impress possible buyers by demonstrating that your business is performing. Although you have always been proud of the performance of your business and employees, buyers will have a keen eye for prospects. Take time to increase customer contracts and have a recurring revenue stream.

Spend Reasonably

Some areas of your business may need some improvements and must be dealt with before you market your business for sale. Don’t hesitate to spend money on upgrading your premises, computer systems and marketing efforts if these can help you get a better sale price later.

Share your Sale Plans with the Right People

Your sale plans must only be shared with your major shareholders. As long as your external consultants and key staff sign a confidentiality agreement or nondisclosure agreement, you may also share with them your plans. Remember that news can create certainty and getting the word out of your sale can put your plans in jeopardy. If you want to sell business fast, ensure you keep your sale as quiet as possible.

Reassure Buyers that your Business Continues to Perform without You

Business buyers can be put off if your business depends too much on you. But demonstrating the reliability of your people in your absence reassures buyers that your business will continue to operate under a new owner. Make buyers see that you have committed, valued and happy employees. They will be confident that the transition will be made easier.