Precision Corporate Services

Tips for Selling your business

Posted on Wednesday, March 10th, 2010 at 12:01 pm.

There are many steps to go through before putting up the for sale sign that will ensure the job is done right. Following certain practices can ensure a smoother process and maybe even a better price tag!

Step 1: Clean up your business

Make sure you have a clean, proper structure in place. Most Venture Capitalists or Equity firms will not even consider touching a business opportunity that is not properly structured. Think about how hard it would be to build a stable house with out a solid, level foundation. It might stand temporarily but you will have problems on your hands for years to come. In addition, having your records in order is not only required by the IRS but also any potential buyer will want to make sure the books are balanced and can clearly see what the cash flow looks like.

Step 2: Empower your team

A team of knowledgeable advisors are a must. Empower them by soliciting and respecting their opinions and decisions. If you were buying a business, you’d want to talk to the management team and ask what they would do to grow the business. It’s easy for a seller to hype up a business and forget about the things they don’t like. Leverage your team to help you justify the price tag.

No one ever said being a business owner was going to be easy – let alone selling one. Whether your business is starting and selling companies or this is your first time on the selling block following these two very simple steps will make the process that much smoother. If you are not sure you have the right business structure or proper set of books request a free consultation from one of our advisors.

Tags: Free tax consultation, sell my business, small business advice, tips for selling a business