As you get ready to sell my business Warner Springs, you have to think about the final phases of the sale. That is the due diligence phase. It is easy to win a potential buyer over with the right marketing technique only to lose them at the due diligence phase. Due diligence is all about verifying that the information you provided to a buyer is accurate and correct. As you get ready for this phase, you must do the following.
Review financial information
Most buyers will want to review audited financial statements for at least the last three years. Buyers know you will have compiled your financials in a way that minimizes taxes. As a result, you will have to explain every detail including the owner’s benefit (SDE) and cash flow. Your business broker in San Diego and accountant will meet with the accountant and/or business broker of the buyer to review and verify the numbers. Your goal as you get ready to sell my business Warner Springs has to be making sure all these records are irrefutable.
Business structure and operations
How a business is structured tells a buyer a lot about how it makes money and if it is sustainable. The business structure and operations help the buyer determine the company’s future earnings potential. Buyers will thus review your business model, products and services, customer base, labor force, materials and operational costs. Your business broker will guide you in this step.
Buyers will want to know about your business’ joint ventures and partnerships with other companies. They will also want to see the existing lines of credit, loan agreements, equipment leases and other indentures. Now is the time for you to review all contracts and make sure they are transferrable.
Your customer lists play a vital role in the sale of a business. Buyers want to know who your biggest customers are and if you are over-dependent on a handful of customers. They will also want to know how you acquire and retain customers. Diversifying your customer base is the key to increasing the value of your business.
A serious buyer will ask for an employee roster and an organizational chart. This helps them know who the key employees are and what their responsibilities are. Ensure employee contracts and independent contractor agreements are ready. Payroll information and employee tax forms must also be available.
Physical assets and real estate
Last but not least, you need a full inventory of all your physical assets and real estate. Indicate the current market value of your property including equipment, automobiles, inventory and real estate.
A lot goes into the sale of a business. The best thing you can do is work with an experienced business broker in San Diego. The broker will help sell my business Warner Springs fast and for the best price.
Sell My Business Warner Springs