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What You Need to Know When You Sell

 

You need to be prepared to look at your business from the perspective of a potential Buyer. It doesn’t matter if you’re raking in millions or barely scraping by, Buyers will want to see the full picture.

A big part of that preparation is diving into the nooks and crannies of your business to address any issues before they come to the Buyer’s attention. This can take time, but the sooner you start the sooner you can be sure your business is looking its best.

Here are some questions you should ask yourself as you prepare to sell:

  • Are your books easy to understand for potential Buyers?
  • Does your A/P and A/R aging report look appealing?
  • Do you have any undisclosed partners or ownership concerns you need to clean up?
  • Do you have any outdated business agreements that need to be replaced with updated, valid contracts?
  • Do all of your employees have defined roles, duties and pay rates? Your First Choice Business Broker can help you gather this information with a simple employee questionnaire and present it without breaking confidentiality.
  • Have you and your fellow owners [if applicable] determined how you’ll train a new Buyer?
  • Are you up to date on tax and employment paperwork? If you were audited today, would you be ready?
  • Are you facing any litigation? Be sure to mention anything, no matter how frivolous you think it might be.
  • Are you properly licensed and in good standing with all state and local regulations?
  • Do you have a business plan? Even if you’ve never fully implemented it, a potential Buyer may be intrigued by an established business plan. You can even provide general ideas up front and save the details for the due diligence phase of the sales process.

Once you’ve asked yourself these important questions, and contacted First Choice Business Brokers of Houston to help you properly position your business for sale, you’ll be well-prepared for the business sales process.