How Do I Get Ready To Sell My Business?
How do I get ready to sell my business? We get asked this question a lot! Here are our Top 3 suggestions for being proactive in preparing your business for sale.
Don’t wait too late to select your Deal Team
Your Deal Team is comprised of four professionals, and their teams, that will work on your behalf to help you navigate complex sale negotiations and represent your best interests:
- Business Broker
- Financial Advisor
At Benchmark Business Group we recommend you select your Deal Team up to three years in advance of the date you will list your business for sale. Although you may not be working closely with them for that entire period, you should engage with them to identify the opportunities your business has to prepare for buyer due diligence, optimize sale proceeds, and explore the dynamics that may negatively impact your sale proceeds. You won’t regret looking ahead to anticipate tax issues and developing strategies for investing proceeds to minimize taxes and maximize your return.
Ask yourself this question:
How would my business perform if I were unexpectedly unable to work for three months? Which would be your answer?
- Hardly suffer at all
- Suffer a little, but survive
- Suffer a lot, but survive
- Suffer a lot, and not survive
If you answered number one, hardly suffer at all, then a buyer is much more likely to pay a premium for your business. The less dependent your business is on you, the more value it has to a buyer. It’s never too early to begin to focus on designing your business to run without you! One of the 8 Drivers of Business Value measures the degree to which your business is dependent on you.
Put on “Buyer’s Glasses” to more clearly see how Buyers will look at your business.
Buyers look for businesses that are already providing value to the owner. As you prepare your business for sale (and you should always be preparing your business for sale!), your most valuable tool is a new pair of glasses – the “Buyer’s Glasses.” With the Buyer’s Glasses on you can take a closer, more critical look at how buyers will view your business. When you are able to see your business as if you were considering buying it, you will more clearly see what needs to be different in order for a buyer to offer you top dollar. Put on your Buyer’s Glasses and don’t wait too late to design your business to ensure you realize maximum value! You can find out how your business scores in all eight drivers of value by taking a quick, confidential 15 minute assessment. Take the time today to get your Value Builder Score and identify what you can do to start increasing the value of your business.