Checklist for Closing a Business

A business broker Orange County can help sell your business regardless of its condition. If you are worried your business is unsellable, all you need to do is contact a business brokerage firm. The firm will help you know how much you can get for your business, the type of sale you should consider and also help with timing in order to sell fast and at the best price. However, if your goal is to close the business and sell what is left, there are a number of things you will have to do as the business owner.

Collect the outstanding accounts receivable
If your business has any outstanding accounts receivable, you need to find a strategy to collect them. You should make collection attempts before you announce you are selling or closing the business. Making the announcement before collecting what you can will make customers feel they don’t have to pay what they owe. For the aging receivables, you need to offer discounts for their immediate payment. You should also call the customers and ask them personally for the payments. For those accounts that you cannot collect, sell them to a factor. With this option you will not get the full amount but you will get a percentage of the invoice. Needless to say, experienced business brokers Orange County can help with the collection and sale of outstanding account receivables.

Inform your customers and complete pending jobs
Once your business has been listed and you are on the closing stage, it is time to inform your customers that you intend on selling or closing the business. For large businesses, issuing a press release will be necessary. With the small businesses, all you need is to publish a statement in the local newspaper. In addition to issuing the statement, you need to complete all the pending jobs and contracts. That way you will be able to avoid lawsuits for failing to fulfill contracts. If it is impossible to complete jobs that are in progress, you can negotiate with your customers for an early termination.

Notify the creditors and pay the outstanding debts
This is another step that your business broker Orange County can help with. If you owe money, the value of your business will be impacted negatively. A good business broker will find ways for you to settle the debts thus boosting the value of your firm.

Notify and pay the employees
If the goal is to close the business and not to transfer ownership to a new buyer, you will have to notify the employees and pay them. Your business broker will help you know the best time to tell your employees that you are closing.

Other things you will need to do is to submit the final sales tax form and pay what is owed, file the final income tax return, file the final employer tax returns and distribute the remaining cash/assets to the owners. Work with an experienced business broker throughout the sale or closing process.

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