Questions You Must Answer Before Selling a Business

Every business broker Orange County will ask you to think twice before selling your business. The reason for this is because selling is a huge undertaking and the results are not as instant as you would want. Business brokers also want to be sure that you are a serious seller so that you don’t end up wasting their time. Prior to listing your business, there are a few questions you will need to answer.

Is the business ready to sell?

The first thing business brokers Orange County will want to know is your reason for selling. You cannot wake up one morning, decide to sell and hire a business broker. Brokers are paid once the sale is concluded. If you are not a serious seller, you will end up wasting their time.

Still on whether your business is ready to sell, you need to remember that it can take up to 2 years to sell a business. What is more is that potential buyers will want to see at least three years of your tax returns and financial records. When you decide to sell, you must make sure you are selling for the right reason and that all the documents are ready.

How will buyers value your business?

Business valuation is done differently. It mostly depends on the nature of a business. The good news is that your business broker Orange County will determine the right valuation approach and give you advice on how to proceed. Brokers also know what buyers are looking for and will help you get ready for the sale.

Do you have the right team?

The first person you should add to your team is an experienced business broker. This has to be a broker who has experience selling businesses that are similar to yours. Second, you will need a transaction attorney, and a financial advisor. Always remember that the buyer will have a good team that will comb through your business. Make sure you have a better team.

Is now the right time to sell?

Don’t wait until your business is going under to think about selling it. The best time to sell is when your business is doing very well. At this time you will be able to demand a higher price for it. The market climate will also matter. If the interest rates are too high, selling now might not be the best idea unless you plan on offering seller financing.

Can the business thrive without you?

Buyers don’t want to buy a business that is over dependent on the owner. They want a business that will run on autopilot after the transfer of ownership. You need to remove yourself from the daily operations of the business and make sure your business has a great management team.

These are just some of the main questions you need to ask. Your business broker will ask more questions before he agrees to work for you.

Business Broker Orange County