How to Prepare for a Business Exit
One of the core values of our experienced business brokers Garden Grove is small business advocacy. A key component of our values is to share educational information and resources with the community we serve in Orange County. We work hard to ensure our clients learn how to sell their business and the benefits that come with buying an existing business as opposed to starting one from scratch. Today we will be looking at how you can prepare your business for sale.
Preparing your business for sale is vital to ensure the process goes smoothly. Proper preparation will also ensure your business broker Garden Grove is able to help you to his fullest capacity to enable you reap the highest return on investment. When you come to us, we will help you get your business ready by assisting with the following key areas.
Financial documents and records
Even before you request for a business valuation, it is crucial that your finances and associated records be in good order and easy to access. Our business broker in Orange County will ask for your past 3 years profit and loss statements, tax returns as well as your balance sheets. We need this information to help with valuation and to get the details we need to effectively market your business. The three documents will also come in handy during due diligence.
Who manages the daily operations of your business? This is the next question our team will ask. If you alone manage the day to day operations of the company, you will have to restructure everything. Our support here will be helping you identify the best fit employees to train to take on your roles. We may also recommend and help you hire a manager to complete the responsibilities.
The reason we do this is because buyers are not interested in buying businesses that cannot run smoothly in the absence of the owner. We will help you train a management team so that your business runs efficiently with or without you. If you are the person who runs everything, a buyer will know that once you exit things will start to fall apart. You need to remove yourself from the daily operations and that is what we are here to help you do.
To avoid delays during the sale, you need a foolproof transition plan. Our business broker Garden Grove will help with your transition plan so that the transfer of ownership will take place without having to shut the business down even for a day. We help you come up with a detailed transition plan which takes into account your full operations including customers, vendors and employees. We will make it easy for a buyer to take over your business.
Getting your business ready to sell might seem like a lot but when you hire us, we will take the burden off your shoulders. For more information on getting your business ready or help with the sale process, please visit our website or schedule a free consultation now. We are always happy to hear from you.