Selling a business is a complex venture thus the reason you should work with an experienced business broker San Diego. The role of the broker is to help navigate the pitfalls, find you the best buyer, manage your expectations, and simply guarantee everything runs as smoothly as possible. However, even when working with an experienced broker there are a couple of steps you will have to take when selling your business.
Determine your reason for selling
Business brokers San Diego will first want to know your reason for selling. This is done to determine if you are serious about selling and if your reason for selling is a solid one. The main reasons business owners give include:
- Partnership disputes
- Illness or death
- Becoming overworked
Get a valuation
Now that you are serious about selling, the next thing you have to do is make sure your business is as attractive to potential buyers as possible. Doing this requires that you understand the attributes that make a business attractive. They include:
- Increasing profits
- Strong customer base
- Consistent income figures
- Major contract that spans several years
After performing a business valuation, your business broker San Diego will be able to determine the true value of your business and help with pricing.
Time the sale
Just because you are ready to sell now doesn’t mean you go ahead and close. It takes time to sell a business. On average, it will take about 8 months. You, therefore, need to be patient even after listing. The best time to sell is when your business is doing very well and when there are not many businesses similar to yours that are being sold. You also have to keep the business running smoothly throughout the sale.
Get the documents ready
Most buyers are mostly interested in verifiable numbers. This is why you need to gather all your financial statements and tax returns for the last three years. Your business broker will give you a complete list of the documents you need. Gather these documents and organize them in a way that is easy to review.
The majority of the buyers that will contact you will only be interested in snooping around. That is why you need to prequalify them before disclosing any information about your business. A reliable business broker San Diego will help with buyer screening.
These four steps are crucial when selling a business. You, however, need to make sure you are working with the best business broker so as to avoid surprises along the way.