How to Sell a Business in 5 Easy Steps

how to sell a business

For every business, the process of pursuing a sale can include a number of confusing steps that could take months to finish. Plus, any unexpected delays can require larger investments and force you to spend more money on day-to-day operations. If you are hoping to speed up your sale, then it is essential that you take time to craft a clear, concise plan. Listed below are several tips for selling your business quickly.

1. Document All of Your Operations

As you prepare to sell your business, you should also consider documenting all of your business operations. If your business routinely outperforms any competitors, then you may want to document all of the decisions that have enabled you to stay apart. For example, you may consider supplying a procedures manual, organization chart, employment agreements, and even automated processes that are documented. Likewise, by providing the buyer with business operation documents, you can help smooth the transition and set them up for long term success which may increase the value of your company.

 2. Analyze Your Numbers

One of the most essential steps is to review your accounting records in order to make sure that you possess accurate, updated records. By creating a set of records that are easy to understand, you can help buyers review your records quickly. Likewise, you may consider including industry benchmarks and analyses as this will help buyers fully understand your company’s performance.  Your accounting records are some of the first documents that potential buyers will see, so it is extremely important to make a quality first impression.

3. Prepare for Due Diligence

In order to avoid any delays, you will also want to possess complete, organized records that you can pass along to buyers as they look to perform due diligence. In these records, you should highlight the value of your business as well as the ways in which it will continue to succeed. By providing these records early-on, you can proactively quell any anxiety on the buyers part which will help keep the sale moving forward.

4. Plan for a Smooth Transition

Likewise, you should also begin producing plans that will underscore the steps necessary for a smooth transition. By producing an in-depth exit plan, you can help any buyers understand what they will need to do in order to transition the company smoothly. Communicate with stakeholders, employees, and buyers in order to discover what will help create an effective transition after the sale. Also, you should always be willing and available to discuss questions and concerns. Clear communication and a cohesive plan are essential for completing the purchase.

 5. Find a Business Broker

Finally, if you find that you need to sell your business fast and at a fair value, then you should consider hiring a business broker. They will work hand-in-hand with you in order to guide you through the often confusing process. Ultimately, by implementing these steps into your plan, you can ensure a great result for both the buyer and seller.

About the author

Marla DiCarlo is an accomplished business consultant with more than 28 years of professional accounting experience. As co-owner and CEO of Raincatcher, she helps business owners learn how to sell a business so they can get paid the maximum value for their company. 

Be the first to comment

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.