Putting your strengths first will help you sell your business. While this may seem obvious, a surprising number of business owners will either improperly index the strengths of their business or fail to emphasize those strengths adequately. In this article, we will examine four key business strengths you should focus on when it comes time to sell.
1. Understanding Your Buyer
You know your business, but you don’t necessarily know what buyer is best for it in the long run. If you’ve never sold a business before (and most business owners haven’t), then you may not know how to best position and present your business for sale.
A merger and acquisition advisor is immensely valuable in this regard. These professionals are adept at determining which prospective buyers are serious and which ones are not. Additionally, an M&A advisor will use his or her own databases of prospective and vetted buyers and try to match your business with the prospective buyers that are most likely to be a good fit. When dealing with a buyer, a seasoned advisor will put emphasis on your strengths whenever possible.
Many business owners want to sell their business to fund their dream retirement, but don’t know where to start.
I’ve used these 5 Critical Questions to help my clients prepare and start increasing their business value.
2. Maintaining Normal Operations
Selling a business can be very demanding and underscores, once again, the value of working with an M&A advisor. An advisor will focus on selling your business so that you have more time to focus on the day-to-day of running your business.
The last thing you want is to waste your time on buyers who are not serious. Remember, if your business suffers as a result of the time you spend away from operating it during the sale process, then the value of your business to prospective buyers could suffer.
3. Determining the Best Price
If you incorrectly price your business, you could dramatically reduce interest in it. M&A advisors are experts at pricing businesses and can help you determine the best possible price. Many business owners have unrealistic valuations and others may even undervalue their business or fail to incorporate all aspects of their business. Working with a professional advisor can help you quickly determine the best price, which will help maximize the strengths of your business.
4. Readying Your Business for Sale
A lot goes into getting your business ready to sell. It isn’t a one-dimensional process, but instead involves every aspect of your business.
Getting your business ready to sell isn’t about making it look presentable and putting a “new coat of paint” on things, although this is a factor. Instead, it is necessary to have every aspect of your business in order. From paperwork such as tax returns, contracts, and forms to a business plan and more, it is important to consider every facet of your business.
You should reflect on what you would want to see if you were the one looking to buy the business. Be sure to do everything possible to build up your strengths.
Getting your business ready for sale means factoring in the strengths and weakness of your business, then fixing weaknesses whenever possible and building upon your strengths. Working with a merger and acquisition advisor, like EastWind Business Solutions, can help you address every point covered in this article (and more), so you can put your strengths first and increase the potential of a successful sale of your business.