Process Essay: How To Sell Your Business

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Having one's own business is a great deal of work. It could get overwhelming to the point that you want to let go. Selling a business is an important event where you have the opportunity to reap financial rewards for your hard work and sacrifice. You need to put just as much preparation into the sale of the business as you did when you started it.

How to Sell Your Business

1. Resolve outstanding problems within the business. Spruce up the place. Dispose useless or outdated inventory and equipment.

2. Get all financial documents up to date and accurate. Be ready with the profit and loss records, balance sheets and tax returns, dating back at least three years. Present other documents the buyer will require during the due …show more content…

A business appraiser or expert evaluator can help you come up with a fair and realistic asking price for the business. Among the factors to take into account are the current economic conditions, market trends, the terms of payment, the history of profitability, the company's assets, opportunity for growth, etc. Without professional help, you may inflate the value of the company. Setting a very high price may signal that you are not serious about selling. Consider, too, similar businesses that were sold and how much they were valued. You cannot come up with a figure unless you have all the accurate numbers and information ready. Be realistic about your price …show more content…

Do not show your financial statements to everyone who asks about the business for sale. Require the prospective buyers to make a written offer contingent to reviewing the business' financial documents. Qualify potential buyers; separate the serious buyers from the "lookers".

9. All sellers hope to get paid at once in full but this rarely happens. Usually, buyers make a down payment and pay the remainder in installments. Be flexible and creative with the terms of transaction.
Terms can be an effective negotiating tool for the business to be sold.

10. While waiting to sell the business, keep running the business efficiently and profitably. It is harder to sell a business that has flat or negative sales or that ceased operations. Remaining in business is critical to selling the business. Thoroughly plan and be patient. On average, it takes 6 to 18 months to sell a business. You could wait for the right time to sell. If your business is not performing favorably, try to wait until it picks up. You could also wait until the economic climate is rosier to maximize the returns you except to

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