How to Get Your Books in Order before Selling Your Business
The first thing your business broker Newport Beach will recommend you do is get your books in order before listing your business. You only have one chance at getting things right. The smallest mistake can keep your business from selling or you might end up selling at a loss. At So-Cal Business Brokers we don’t just help you advertise and sell your business but also help you get it ready for sale.
Our in-house business brokers Newport Beach recommend that you start getting things in order at least 3 years in advance. In the current market, prospective buyers demand more transparency. This means they will go through every inch of your business when performing due diligence. They will look at everything from your business financials and equipment to real estate or leases. Early preparation is the key to avoiding raising red flags that may derail the sale. Our team will help gather the relevant documents, clean them and present them in a manner that wins the confidence of buyers. As you get ready, here are the three things you need to know.
Buyers are interested in your profits and not revenue
When getting ready for the sale, it is very common for business owners to assume that buyers will be impressed by the business’ revenue. Yes the revenue figures will play a part in winning the heart of a prospective buyer but buyers are mainly interested in your profits. They want to see your profits and the owners’ income.
Our team will identify your business risks and opportunities. We can help diversify so that your business is not dependent on one product or service. Every business is unique. Give us a call today for a free consultation with our business brokers.
Verifiable financial claims
Serious buyers are not interested in air burgers. They want verifiable claims. If you claim to generate income from a certain source, buyers will want to see valid proof. Buyers will want to see deposit records as well as bank statements. If you can’t prove your sources of income serious buyers will simply overlook them. One of the duties of our business brokers Newport Beach is to help you show proof.
Buyers don’t pay for just potential
Last but not least, it is important to note that buyers will not pay for potential. It is one thing to have a gold mine and another to mine the gold. Buyers will not pay for perception. If your business is just a concept with no proof of revenue stream most buyers will stay away from it.
Are you getting ready to sell your business? Avoid the guesswork and contact the best team in the business. At So-Cal Business Brokers we want to help you sell fast and for maximum profit. Schedule a free consultation with our business broker Newport Beach now.