As you may already know, selling a business is a very complex venture. It involves many considerations. This is why enlisting the help of a business broker 92168 trusts is the wisest thing to do. You may also need to hire an accountant, transaction attorney and a real estate planner. The best thing is there are many business brokerage firms that offer all the professionals you need under one room. Away from that, let’s take a look at the steps involved when selling a business.
Reason for selling
The first question a business broker 92168 will ask you before agreeing to work for you is your reason for selling. This is because your reason for selling will help them know if you will go through with the sale to the end or waste the brokers time. Your reason for selling is also the first question a potential buyer will ask you. Your business broker in San Diego will therefore want to be certain that you are selling for the right reasons.
Here are some of the main reasons business owners sell their businesses:
- Death or illness
- Partnership disputes
- Becoming overworked
Timing is key
You should start getting ready for the sale early. A year or two ahead of time will be great. This ample time will help improve your business in every aspect so that it is more attractive to potential buyers. If you can, sell your business when it is at its peak. When it has increasing profits, consistent income figures, strong client base and major contracts, you will have an easy time find a good buyer and closing at the best price.
Get a business valuation
To set an accurate selling price and to know the strengths and weaknesses of your business, you need a business valuation. A business broker or appraiser will help draw up a detailed explanation of the worth of your business. This document brings credibility to the set selling price.
Get documents ready
Your claims have to be backed with proof. Proof, in this case, is financial statements and tax returns that date back at least three years. You will also need to create a list of all the contracts that are related to the sale transaction and all other paperwork. You also need a summary that describes how you do businesses and what is included in the sale. Luckily, an experience business broker will provide you with a list of all the documents you will need.
These are the key steps involved in the sale of a business. To avoid mistakes that may cost you a good deal, always work with an experienced business broker in San Diego throughout the sale. The broker has valuable experience and resources that will help close fast and for the best price and terms.