When you want to sell your business, the first thing you have to do is hire a business broker San Diego. The business broker will guide you through the sale including performing a business valuation, setting a selling price, finding qualified buyers, negotiating with buyers, and managing your expectations. The best thing is that the broker doesn’t get paid unless your business sells. Make sure you read and understand the terms of service before choosing a broker. Once that is done, there are a couple of things you have to do to sell safely and smartly.
Determine the exact value of your business
In this step you will need a business valuation. Your business brokers San Diego will review your business and its competitive environment and consider everything from inventories and receivables to assets and outstanding debt or liens. A thorough valuation will help identify threats and opportunities that define value. The value of your business will mostly be affected by the market demand, industry trends, its financial health, location and a range of other variables.
Clean up your financials
When considering a business to purchase, buyers want as much transparency as possible. They perform careful due diligence looking at business’ financials to the equipment and real estate. You can avoid red flags by working with an accountant to clean up your financial statements as well as tax returns. Buyers will mostly look at records that date back three years. Make sure all income has been accounted for.
Prepare an exit strategy
If you want to outlast your competitors, you must create an exit strategy early. Don’t be forced out by old age, sickness or lack of interest in succession from your kids. You cannot run your business forever. The best thing is that a business broker San Diego can help create the perfect exit strategy. The key, however, is to create the exit strategy early.
To make your business more attractive to buyers you have to boost its sales. When the sales are declining, buyers will be afraid of investing in your business. Diversifying your customer base or jumpstarting sales will increase interest in your business. Buyers are willing to pay top dollar for businesses that are doing really well. Boosting your sales will help win them over.
Not every buyer that comes knocking is interested in buying your business. Some just want to snoop around while others don’t have the means to finance the deal. This is why you need to prequalify buyers before letting them in. Your business brokers San Diego will help with this. Can the buyer raise money to buy your business? Does he fit into your company’s culture?
You must never rush the sale of a business. Take time to get your business ready for sale and always hire the right team to help with the sale.