Which First Steps Must You Take When Selling a Business?

Hiring a business broker Orange County is obvious the first step you need to take. The reason for this is because a business broker has sold many businesses before. He will advise you accordingly to avoid mishaps during the sale. What is more is that a good business broker will help find qualified buyers, help with negotiations and ensure that you close first. Even so, there are still three very important things you need to do in the first step of selling a business.

Pay off outstanding payments
A business valuation is meant to determine the actual worth of your business. Business brokers Orange County will help you with that. However, it is important to note that the final report will be affected significantly by the outstanding payments. These payments include outstanding loans, invoices and so on. To ensure you get the best report and price your business right, pay the outstanding payments.

The main point here is that the less liability your business has the better it will look to the potential buyers. If there are outstanding payments owned to your business, try and collect on them before the sale. This is particularly so if the outstanding debts are over 90 days as these are considered to be likely to be written off.

Get your finances in order
The second thing you need to do is to get your finances in order. Buyers will want to take a look at your finances. Before you list your business, you need to track all the financial information as well as conduct necessary business accounting. The more understandable and concise the financial information is, the smoother the sale will go. A business broker Orange County can help find a qualified CPA to help with the accounts and also give you advice on what to do to make your financial information more attractive to buyers.

Fix weak areas
The third thing you need to do is to identify the weak areas of your company and come up with a strategy to address those weaknesses. The reason why this is so important is because buyers will use your weaknesses against you during negotiations. The business valuation report will give you an idea of your business weaknesses. If you have time, don’t sell until you fix those weaknesses.

The three are the most important things you need to do when getting ready to sell your business. Never rush the process. You also need to heed to the advice given by the business broker Orange County that you hire.

Business broker Orange County