Boss Lady

I’m interested in selling my business. What is the first step?

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You have had your business for a long time and although you love it, you realize you will have to sell it. You are not alone. Coronavirus has forced many businesses to close or to be sold. Business brokers, buyers, and sellers are waiting to see what will happen with the vaccine so that they can go back to business as usual.

When you are able to sell your business, there are a few basic steps of which you should be aware. Following the appropriate steps will help to get the most money you can for your business.

Find a business broker

Before you begin the process of selling your business it is always a good idea to talk to a business broker. A business broker is a bit like a real estate agent for companies. You do not have to use a broker to sell your business, but it certainly will make things easier. They can take care of doing research and checking the credit of potential buyers.

A Business Broker will be well-versed in the process and paperwork it takes to sell a business. They will also have an escrow lawyer who will make sure that everything is done fairly.

How much is your company worth?

The first step in selling your business is figuring out how much it’s worth. This is where it can get kind of tricky because the method you use for valuation will depend on a number of factors.

If you are selling your business for liquidation purposes, you would want to use an asset valuation process to determine how much your company was worth. This would include looking at how much the office equipment, inventory, and the property is worth versus your debts.

In some cases, the valuation may depend upon such things as cash flow potential, bottom-line profits, or the value of your revenue. Much of the value of your business will depend on the motivation of the people who are likely to buy it. for instance, if you have a sporting goods store that is in a decent location, A big sporting goods company may be interested in buying it even if it is not turning a profit.

You will also want to gather your tax returns and receipts for the last 3 years. It will be much easier to sell your business if you have kept good records.

Write a memorandum about your business

A memorandum will summarize the specs of your business and its assets and liabilities. you will want to have a list of basic facts about your company for potential buyers to peruse.

Find a buyer

There are some websites that list companies and individuals who are looking to buy businesses. You can also advertise on various websites. Be sure to list details specs and the nature of the business but always remember to remain anonymous until you actually meet with a potential buyer. Before you have a meeting, you should make sure that they have the money to buy your business.

At this point, the buyer is likely to make sure that everything is legitimate and that all the information you have provided is correct. You can have an attorney look over the paperwork. If you work with a business broker, an escrow attorney will make sure that everybody gets exactly what they are due. If everything goes well and no one backs out, you can close the sale.

Selling a business is a hard decision. However, if you follow the right steps and use a business broker, you can use the money to move on to your next venture.

About Nancy Youssef

nancyy@thebusinesswomanmedia.com'

Nancy Youssef is an award-winning finance broker, mentor, philanthropist, and founder of Classic Finance and Classic Mentoring. Recognised as a leader, innovator and industry expert, she is an ambassador for change both within the finance industry here in Australia, and in some of the world’s most impoverished communities. Nancy is the author of Fear Money Purpose, which is designed to inspire others – women especially – to step out of their comfort zone and be inspired to achieve more. Find out more at www.nancyyoussef.com.au

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