The first recommendation your business broker Orange County will make when you hire him is to spend a little more time getting your business ready for sale. Yes selling the business as it is will work but taking time to prepare it will help sell fast and for maximum profit. Your business broker will perform a business valuation which reveals the strengths and weaknesses that your business has. Some of the most common areas you need to fix before listing your business include the following.
Questionable or excessive tax deductions
Even where the tax deductions are legitimate, they will lower the earnings of your business. Buyers will want to know why you have too many deductions and you will need to have a good explanation for them. Scaling back on the tax deductions is one of the best things you can do when getting your business ready for sale. Your business brokers Orange County will be happy to help with this.
Pending or threatening litigations
One thing you will notice about serious buyers is that they are not interested in acquiring your baggage. This is more so when it comes to debts and legal issues. Buyers want a business that they can acquire and start running smoothly without issues getting in the way. When getting ready to sell you should consider resolving matters that can be resolved. Remember that you will be required to disclose any prior litigation to the buyers. The more litigation you can take off the table the better off you will be when selling your business.
Organize your books and records
You will not be able to evade the due diligence stage when selling your business. This is why you need to start preparing for this stage early enough. To do this you will need to gather all relevant business books and records; clean them up and organize them in a way that will win the trust of buyers. A business broker Orange County knows what buyers will be considering when evaluating your business. He will help organize your books and records the right way.
To make your business more attractive to buyers you should consider hiring the right people in the right jobs and being paid the right amounts. If you don’t plan on sticking around after the sale you need to ensure that the business can still operate smoothly in your absence. This means hiring or training a management team to take over your duties.
It is not possible to fix everything when getting your business ready for sale. However, the more issues you fix the better.