As you get ready to hire a distribution business broker, you should always remember that it is your job to gather all relevant financial documents. These documents are needed to give buyers a clear and objective facts about your business. While this burden lies on you, our team at So-Cal Business Brokers is happy to enlighten you on the documents that will be needed. The required documents will vary from one business to the next. However, thanks to our more than 20 years of experience selling businesses like yours we understand the market better and know exactly what needs to be done to achieve the best results. But why exactly are financial records so important?
The first use of the financial records is to help determine a fair asking price. Our job as your distribution business brokers will be a lot harder if we don’t know how much your business is really worth. To determine worth, one of the things we go through are your financial records. Gathering these records well in advance will make our work easier.
Develop improvement strategies
It is obvious that you want to sell your business for maximum profit. This will not be possible if you don’t increase its value prior to listing. With your financial records in hand, our business brokers will be able to identify unexplored opportunities that you can use to make the business more valuable. When your records are in order, it is easier to determine and improve your earnings multiples. Considering price-to-earnings ratios are dependent on various factors, adequate preparation will afford you the time to act to improve the overall value of your business.
Buyers expect to see certain documents before making a decision
One of the key reasons why you need to prepare your financial records early before listing is so as to win over potential buyers. Taking the time to gather all relevant documents makes your business more appealing to the potential buyers. In our experience selling distribution businesses, having solid documentation is the clearest way of illustrating the financial value of a business. Having all required documents ready and well organized reflects well on you and your distribution business. This will also smooth the due diligence phase.
One of our duties at So-Cal Business Brokers is making sure that you have all relevant documents needed to win over a buyer and speed up the sale. Contact us today for a free consultation with our experienced distribution business brokers.