Preparing Your Business for Sale
    It will likely be the biggest financial deal you'll ever make, so it's vitally important to
    be sure you are properly prepared when selling your business.  Taking the proper
    steps to get your business ready for sale can significantly improve the likelihood
    of a successful sale.

    For many business owners, the prospect of selling the business after years of
    pouring every effort into growing the company can be emotional and difficult.  
    That's a major reason why it pays to structure a plan to prepare for the sale.  
    Remember, it's crucial to use the same care and patience that is used to grow and
    sustain a business.

    What important steps are needed to prepare your company for sale ?

  • Determine the company's actual worth.  There are a lot of formulas for
    valuing a business  Buyers may base a purchase offer at least in part on the
    value of the assets in a business, cash flow, gross revenues, annual growth
    and other factors.  The sale price generally depends on profits and, in most
    cases, the sale price is some multiple of the business profit.  Valuations can
    be obtained from a number of sources including a certified business
    intermediary.
  • Be sure your records are up to date.  You want all of your hard work to pay
    off in the sale, so be sure you have current, detailed records that provide an
    audited assessment of the company's financial position and future
    projections.
  • Remember your staff is an important asset.  The loss of key employees during
    a sale can kill the deal.  Key employees may be crucial to the ongoing
    success of the company.  Assess which employees are prepared to stay with
    the company through the transition.
  • Assemble a team of experts.  No matter how independent you are, the sale of
    a business isn't something to handle on your own.  A business intermediary
    will take some of the load off your shoulders so you can spend time running
    the business when it's needed most.  Keep in mind the sales performance of
    the company during the time it's on the market is crucial, so working with a
    qualified business intermediary to sell your business will allow you to focus
    on the on-going operation of the company.  Business Intermediaries know
    the ins and outs of Mergers & Acquisitions and take pride in what they do.

    Always remember that selling a business is a one time event.  Preparation is key to
    a successful sale.  Be sure you understand the process involved.

                                                                          ###

    The International Business Brokers Association is the largest international, non-
    profit association operating exclusively for the benefit of people and firms
    engaged in the various aspects of a business brokerage and mergers and
    acquisitions.  IBBA has 1,950 members worldwide, with headquarters in Chicago,
    Illinois.

    ©2007 International Business Brokers Association (IBBA) all rights reserved.  
    Permission to reuse any or all of this material should be directed to the IBBA at 888-
    686-4442 and is restricted to IBBA members.
Contact us and schedule a confidential, free and no-obligation meeting to discuss
selling your business.
                   Phone 512-258-7300 or Email   inquiry@bmerchants.com
Business
Merchants, LLC
All rights reserved.
Business Merchants, LLC
Phone 512-258-7300             Email  inquiry@bmerchants.com                      Fax  512-258-7305