Hiring a business broker San Diego is the first thing that most business owners do when they are ready to sell their business. This is one of the wisest decisions you can make. The reason for this is because the business broker is involved daily in the sale of businesses and will use his professional connections to help you find the right buyer and sell fast. All in all, if you want to sell the business fast, there are a couple of things you will have to do on your part.
Hire a business broker
The first and the most obvious thing are to find reliable business brokers San Diego. The business broker will take over the sale part so that you can focus on other important things. What is more is that the right broker will help you navigate challenges that come with the sale of a business. It is also easier to maintain confidentiality when working with an independent business broker as opposed to selling the business on your own. Moreover, a broker will help with negotiations and all the paperwork.
Get a business valuation report
The second thing you will need to do is to get a comprehensive business valuation report. The purpose of the valuation report is to help you know how much your business is really worth. You can even use this report to work on the weak points of your business. A business broker San Diego can help with business valuation. Alternatively, you can work with an independent business appraiser. Make sure you know how much your business is worth before hiring an appraiser. This will help you know when the figures being given to you are inaccurate. With the valuation report in hand, set a fair asking price.
Just because you are selling your business does not mean you stop running it completely. You need to keep transacting. If you stop doing business, the value of your company will go down and so will the price given to you by potential buyers.
Keeping the sale confidential is very important. The fewer the number of people learn of the sale the better. This is because if word gets out, you may lose your employees, suppliers, distributors and even customers who are worried about the uncertain future. Make sure that you keep the sale confidential. A business broker will help draft a foolproof confidentiality agreement that potential buyers have to sign before getting more information about your business.
One of the reasons why most business remains on the market for long is due to the lack of financing. Offering financing will help speed up the process.
Have a successor in place
Last but not least, to be able to sell your business fast, you will have to appoint and train a successor. Buyers are more interested in businesses that can continue running efficiently even with your absence.
A business broker Orange County will not just help you sell your business and manage your expectations but can also help with a business valuation. Whether you plan on using an independent valuation expert or seeking help from a business broker, there are a number of things you need to do in order to get the best valuation. In this post, we shall be covering the things you need to do when preparing your business for a valuation.
Get your financials ready
A business valuation involves going through your financial records. With that in mind, the first thing you need to do is to prepare your financials. Preparing all the company’s financial statements is the key to determining how much your business is really worth. You need to ensure all your books are current and entered correctly. Your business valuation expert will want to go through your financial records for the last 3 to 4 years. This includes profit and loss, balance sheet as well as ‘go away’ expense list. The case is the same if your business brokers Orange County will be handling the valuation.
Know the asset value of your company
In addition to the financials, the value of your company’s assets will be considered. The trickiest part of any business valuation process is determining the exact value of your assets. Don’t hesitate to get an appraiser to value your equipment before the valuation starts. Valuing you assets also includes estimating the replacement value of tangible assets. You also need to assign value for the intangible assets such as trademarks and patents. Most of the intangible assets will fall under ‘goodwill’. Your business broker will help you determine of your tangible and intangible assets. Involve him early enough.
Improve the value of your business
If you want the final business valuation report before putting your company on the market for sale, it is good to search for ways to improve the overall value of your business. Again a business broker Orange County will help with that. There are many things you can do to boost the value of your business. How much you end up doing will depend on the time that you have.
Another very important thing you will have to do is to find all the operation documents. This will help smooth the transition. Operation documents show that your business is organized, legal and running smoothly. Some of the documents you will need to gather include the following:
- Insurance policies
- Copy of your current lease
- Distributor and supplier contracts
- Professional certificates
- Employment agreements
- Financial agreements
It is after doing all the above that you should go ahead and contact a professional appraiser and get a formal valuation. Business brokers Orange County that offer valuation services will also be a good option. The best thing is that their valuation services are free/cheaper and based on both textbook calculations and market trends.