Introduction
Selling a business is a big decision that requires meticulous planning, strategic implementation, and expert advice. Whether you’re gearing up for retirement, exploring new ventures, or aiming to reap the rewards of your hard work, navigating the intricacies of selling a business can be scary. At 604 Business Brokers, we understand the challenges business owners face when considering selling their business. We have prepared 5 tips for business owners around Vancouver to make the process a little easier.
5 Tips To Help You Get Started
#1: Preparing Your Financial Documentation
Selling a business requires planning, especially when preparing financial statements. Buyers like to see well-organized, accurate, and up-to-date financial statements, this gives them confidence that you are a skilled business operator. While ‘Review Engagement” level financial reporting is ideal, not every situation requires it. We have helped many sellers find a buyer using financial reporting from Quickbooks and other bookkeeping tools. The most important factors are accuracy and consistency in reporting so potential buyers feel confident in what they are buying.
#2: Proper Valuation Of Your Business
Proper valuation of a business is one of the most important part of selling a business. If you overprice your business, you risk turning away interested parties. Conversely, if you underprice your business, you might not be maximizing your sale potential. Evaluating a business a business is an art as well as a science. It is a combination of many factors such as market conditions, location, and industry. At 604 Business Brokers, our focus and expertise is working with business owners around Greater Vancouver to sell their business, so we have extensive experience coming up with an optimal go-to-market asking price. Let us take the guesswork out of evaluating your business, contact us for a free consultation.
#3: Prepare Asset List
As you prepare for the sale of your business, you should also start preparing an asset list. The asset list should include all equipment, inventory, leasehold improvements, or goodwill included in the sale. This gives a clear picture of what is included int he sale, making it easier for potential buyers to determine if they are a good fit. This will also save time for both parties during due diligence.
#4: Maintaining Performance of the Business
It is important for sellers to maintain the performance of the business, even during the sale process. At 604 Business Brokers, we handle the sale process end-to-end so that our clients can focus on operating their business. Disruptions to the stability of the business may be viewed as a risk to potential buyers, so our clients trust us to find qualified buyers while they continue to maintain and grow their business.
#5: Create or Support a Key Management Team
We at 604 Business Brokers have worked with many buyers to acquire businesses; and from our experience working with buyers, we know that operational scalability and limited dependence on individual stakeholders enhances the business’s appeal to prospective buyers. If you are thinking of selling your business, our advice is to plan ahead and start building a strong management team to handle the day-to-day operations of the business. If you have any questions about this, reach out to our team to see how we can help.
Conclusion
Navigating the complexities of selling a business requires planning, expertise, and hard work. Our team is invested in your success because we only succeed when you succeed. We have helped many clients save time and money by foreseeing and avoiding potential roadblocks, let us help you! Thinking of selling your business? Reach out to our team for a free consultation today!
Author Branden Moo
