You put in the long hours and sacrificed many aspects of your former life to make your company the force that it is today. However, for a number of reasons, you have come to the conclusion that it is time to sell your business.
How do you develop a successful business exit strategy that will get you every penny that you deserve? This post will share a few tips that will get you started down that path.
1) Find advisers that can help you
Selling a business is easier said than done. There are many factors that go into a successful exit, so it is important that you find advisers that can guide you through the process. Firms like Generational Equity are staffed with experts that are well-versed in every step that goes into selling a company.
Don’t try to do this on your own, as there are dozens of legal obligations that need to be taken care of, and there are many areas where you can end up spending more money when you are in the process of exiting from your business.
One area where you need to be particularly careful is taxes. A mistake here could cost you many thousands of dollars (and attract unwanted future attention from the authorities), so it is important to get it right the first time.
Another place where you can outsource your efforts is when it comes to marketing. A business broker is well-equipped to handle the advertising and promotion of your company, leaving you to focus solely on keeping it running smoothly during the sales process.
2) Look for deficiencies in your business
Would you sell your car as is? Chances are, you would spend a decent amount of time fixing it up so that it would fetch a better price on the open market.
When it comes to your business, you need to take the same approach. Go through every department and look for areas that fall short of satisfactory performance.
Once you have patched the major holes, then look for areas that can improved dramatically, and then bring them up from good to great.
By taking a few months to address issues like office cleanliness, product quality, and the state of your paperwork (making sure that all tax returns and financial records are present), you can increase the overall sales price that you’ll get in the end.
3) Brush up on your negotiating skills
While you could get lucky with buyers that are simply looking to get into your niche no matter the price, there is a decent chance that you may be facing off against purchasers that will attempt to negotiate the lowest possible figure that they can squeeze out of you.
As such, it is important that you read up on and practice your haggling skills before bringing the first interested buyer through the front doors of your business.
While is important to counter aggressive negotiating tactics, the old adage, ‘the best defense is a good offense’, certainly applies when it comes to selling your business.
Do not be afraid to get greedy. By stating a figure that is above what you think your business is worth, many negotiators will try to bring you down based on that figure, and not what they think business is actually worth.
What’s more, there’s always that chance that some neophyte may take the first offer that you give them. In short, you are taking a loss by leaving money on the table, so be sure to aim high.