Considering Selling Your Business?

Considering selling your business? What you should know.

If you’re thinking about selling your business, you need to get ready. This isn’t just another task; it’s a monumental move that requires strategic planning and meticulous execution. Here’s how to set yourself up for success and get the highest possible value for your business:

Strive To Run Your Business Without You

First things first, do your best to make your business operate independently of you. You need a team that can handle the critical tasks without your constant supervision. Get rid of micromanagement and take an extended vacation to test their capabilities. When buyers see that your business runs smoothly without you, they’ll be more interested because it signals a solid, scalable model.

Financials Are Your Foundation

Your financials need to be spotless. Conduct a thorough financial assessment and ensure your business is showing a healthy profit. A great customer base, market share, and reputation mean nothing if your books are a mess. Cut down on tax write-offs and invest in taxes to present a profitable and attractive business.

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Get a Valuation Early

Even if you’re not planning to sell immediately, get a valuation. It’s a reality check that shows where you need to improve. An M&A advisor can give you this insight and help you understand your business’s true worth.

Update Your Documentation

Have your business and marketing plans, along with employee training and policy manuals, up to date. This shows potential buyers that your business is well-organized and can thrive without you at the helm.

Keep Employees and Customers Happy

Happy employees are crucial for a smooth transition. Offer a solid benefits program to retain key people post-sale. Also, diversify your customer base—no single customer should account for more than 10% of your revenue. Dependency on a single client is a red flag for buyers and will most likely reduce your business’ overall value.

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Assemble Your A-Team

Get your accountant, attorney, and M&A advisor on board early. This dream team will ensure your decisions align with your goals and help you navigate the complexities of selling your business.

Final Thoughts

Selling your business is a marathon, not a sprint. Give yourself at least two years to prepare, and make sure every aspect of your business is polished and profitable. With the right strategy and team in place, you’ll be ready to make the most of this significant milestone. Stay strategic and execute with precision. You’ve got this!

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