How can you get your business ready to sell? First, we need to answer this question, "How soon are you planning to sell?"
If you want to start the process right away, then we will stick to the basics.
#1. Get your financial reports in shape. Buyers typically want to see at least three years of financial data. When we list a company at Transworld, we will ask for three years of tax returns, plus a P&L for the most recent period where no return has been filed.
#2. Organize your banking data. Most banks make it easy to download monthly statements in PDF form from their online banking portals. If you don?t have them already, you should download and save the past three years of monthly statements for your business checking account. We will need them for the Due Diligence process. While you're at it, do this for your business credit card accounts as well. Organize the statements so a prospective buyer can see how you have handled these accounts in the past.
#3. Now the hard part, explaining what you do! The typical small business owner does many little things that may seem inconsequential individually, but in the aggregate, those little things make a big difference. Make a list! Everything from unlocking the door in the morning to paying the bills to reconciling the checking account to meeting with customers. Is there anything on your list that you could delegate or outsource? The more tasks that you can get off of your plate, the more attractive your business will be. (And the smoother the transition to a new owner).
Now if you have longer term sale plans, we can discuss more fundamental changes that may be helpful in positioning your business to fetch its maximum value. These would include documenting procedures, creating (or updating) employee manuals, and developing current staff to assume more responsibility. But this is a great subject for another day, but I invite you to review our Prep to Sell program if you'd like add value to your business prior to sale.
At Transworld Business Advisors - Rocky Mountain, we are always happy to talk with you about getting your business ready to sell, whether that sale is around the corner or in the far future, so schedule a consultation with one of our brokers today!
Rachael Holstein joined the Transworld Team in 2016 as Marketing Coordinator. Her working experience has been largely focused on Business Development and Marketing in the finance, architecture, property management and information technology industries. A long time resident of Cleveland, Ohio, she attained her Undergrad from John Carroll University and a Master’s Degree in Global Interactions from Cleveland State University. She relocated to Denver in 2013 for a change of scenery and a bit of adventure.