Selling a business is a complex task. Many factors could affect the end result and the timeframe. The process is often complicated as well as lengthy, and there are plenty of pitfalls that can befall the unsuspecting business owner. They include failing to sell or sell at lower prices than anticipated and breaches of confidentiality.
With the proper preparation and guidance, you can ensure that your business sale is a success. Realistic expectations are key. This includes assessing your own personal readiness to let go and making preparations for the financial impact of the sale, and the determination of how much your business is really worth.
Another important factor is ensuring that you’re ready for the audits that will be required during the process. This means that you should ensure your financial statements are neat and tidy, as well as having copies of any current contracts with clients or suppliers and creating an org chart to show the flow of information. It’s a good idea to solicit interested parties to sign a nondisclosure agreement to protect your confidential information.
You must be able to answer questions regarding your reasons for selling, and why you think the time is right. It’s essential to describe how the business will continue to thrive under the new ownership. It is also important to consider how the change will impact employees and how you can manage their emotions. Find a buyer who is able to carry on the legacy and mission of the company.