Selling your business does not need to be a long, difficult or tedious process. With these eight simple steps, you can be on your way to selling your business quickly.
- Hire a business broker
Hiring a business broker should be the first thing you do. An advisor will guide you during the entire process. Consider an experienced advisor from Transworld Business Advisors.
- Conduct a business valuation and determine what your business is worth
A business is often worth a certain multiple of its profit. That said, there are numerous ways to perform a business valuation. A business broker can help you determine the right equation and process to value your specific business.
- Prepare and organize your financials
A buyer will want to take a look at your financials – they cannot just take your word for it. Because of that, you need to preemptively organize your financials.
- Draft an executive summary of your business
This is a document that outlines what your business is, the important financials to note, and answers some frequently asked questions.
- Put your business on the market
Your business broker can help list your business in the right channels to attract the right buyers.
- Vet offers from potential buyers
As you receive offers, it is important to sift through them in order to determine which is the best to begin the negotiation process.
- Let the potential buyer vet you
After you have begun the negotiation process, a buyer needs anywhere from 60-120 days to verify your financial documents and review the contract with their broker and lawyer.
- Close the deal
Finally, it is time to sign on the dotted line!