What You Should Know Before Selling

What You Should Know Before Selling
Knowing What to Do Before Selling is Absolutely Critical
Getting the business ready to sell, including making sure everything is in place is the most important part of the sale – except for receiving the money for the transaction.
Critical Preparation!
The sale of a business is a process!
The steps in preparation are:

  1. Getting an accurate and professional Market Evaluation of value for “your“ business! Most people know what your home or cars are worth, but have no clue what possibly their greatest asset (their business) is worth in their specific market. Note: The value of your business is what a buyer will pay! Get a Professional Evaluation from a competent Business Broker or a Business Evaluator.
  2. Taxes: You have an unseen partner in your business – The Tax Man – It’s crucial to discover the options and consequences that you will have once the business sells. You must get a qualified accountant to advise you!
  3. Personal and Business Bookkeeping: If the taxes work out, and you decide to sell, how do you handle your current employees, business supplies, clients, advisors, and family?
  4. The state of your industry: Is your business like a video store in the age of Netflix, or a bookstore in the age of Amazon? Is your business one that is ascending or declining? Are there opportunities to pivot, and how to do so?
  5. Sales trends in your industry: How has your business been trending over the last 3 years?
  6. Family matters: What is the situation with family members? Do you have another generation to take over? Are you at the end of the line without a succession plan?
  7. How many parts of your business are in play? Are you singular or does your business have multiple parts?
  8. Identify your reasons for selling: Why are you selling the business? Has there been a change in your health or family? Has someone died, gotten divorced, or become ill? Or do you want to do something new or retire? What are you going to do after you sell your business?

For guidance to get answer to these questions and more, contact us at (517) 321-2800 or at adam@adamwhitz.com.