Getting any business ready for sale is a complicated proposition and one that will always involve some vital considerations. Whether you plan to sell next week or in the future, you must always consider your potential buyer. Keeping his needs at the forefront of your mind will enable you to close the most lucrative and auspicious deal.
There are five things in particular you’ll need to do.
1. Get Your Ducks in a Row
Before you even think of listing your business for sale, you’ll need to get your financial records in shape. At the very least, buyers will want to see your profit-and-loss statements, your balance sheets and your tax returns going back at least three years. The information they contain will let prospects evaluate your business’s:
- Financial trends.
- Revenue history.
- Pace of growth.
- Gross Margins
- Net Profit
An accountant can play an invaluable role in sorting out this documentation. By ensuring its accuracy and completeness, they will help you avoid unforeseen problems down the road.
2. Stage Your Business
If you are selling a retail operation or somewhere that clients may come to visit, you’ll need to show it off to best advantage. Buyers who see a cluttered and dirty place are likely to walk out faster than they came in. Take the time to make things shine and call in the pros if you must.
3. Protect Your Business and Yourself
Any business sale will hinge upon the transfer of sensitive financial and intellectual information that could, if made public, cause serious damage to all parties concerned. For everyone’s protection, it is essential to draw up and have the buyer sign a confidentiality or non-disclosure agreement before you give out any information. In the best-case scenario, you will also take the time to pre-qualify every buyer beforehand. Otherwise, you may never know exactly who or what you’re dealing with.
4. Assign the Lease
Not every business owns the property from which it operates. If you’re renting your commercial space, the disposition of your lease will play an integral role in your upcoming transaction. The buyer will need to know three things:
- How much time remains on the lease?
- Is the lease assignable?
- How much is your total rent?
The buyer will have to get the landlord’s approval to take it over. Most leases call for the property owner’s express consent and the possible payment of transfer fees or security deposits. The buyer will need to submit an application to the lessor, and any disapproval could easily kill the deal.
5. Deal with Business Licensing Concerns
A 100 percent change of ownership will require that your buyer apply for a business license, and any special permits required to operate that business including the Department of Taxation.
If your company is a corporation or an LLC, you’ll need to officially dissolve it or authorize the sale of the business owned by that entity at close of escrow, This will not only free you from liability for business taxes or filings but also ensure that you no longer incur business debts.
Why Not Let a Business Broker Do It?
Whether you’re selling a business or purchasing one, there’s a lot to think about, and if you’d rather not go to all that trouble, you’d be in good company.
Fortunately, there’s a way to sidestep the headaches and stress. Just call Jennifer Weinberg at 702-326-1055, your local Las Vegas business broker, and let a professional handle the process for you. She’ll see to it that from start to finish, the entire transaction goes as smoothly and painlessly as it possibly can.
The matter of selling a business calls for a substantial amount of knowledge and expertise. Why not call today for a free consultation and valuation on your business and see what Jennifer can do for you?