Is Your Business For Sale? How to Keep All of the Profits!

Does it seem like it is impossible to sell yourIf you have a full book of contacts who are
business? Or, maybe hanging on to it just doesn'tlooking for a business for sale, you may not need
sound like a good idea to you at the moment?a business broker. After all, why give away a
After all, you can hold on to the business forpercentage of the sales proceeds when you can
another year, right? I was just like you. I had afind a buyer yourself? But if you do not have any
small business that wouldn't sell. So, I talked to asbuyers in mind, or if you would like to approach
many brokers and read as much as possiblethe market confidentially, a business broker could
about selling small business's and this was my planbe worth considering.
for a successful sale.Step No 3 - Surviving due diligence
Preparing your business for sale takes more thanThe buyer needs to verify that all the details
putting an advert in the window. Follow theseconnected with your business are as they should
steps to get the best possible price for yourbe. He will ask questions and request copies of
company, and ensure that the sale goes throughdocuments. This is a normal part of the due
smoothly.diligence that any prudent buyer should perform.
Step No 1 - PreparationAs long as you have his undertaking to keep the
This is the most important step in the sequence,information confidential, you should be as helpful
and perhaps the most difficult. After all, you needas possible in providing documents, to push this
to view your business impartially, warts and all. Ifstage of the deal along.
the shop floor or office is looking shabby, that isStep No 4 - Negotiation
the first impression buyers will have of yourEven if negotiation is a skill that comes easily to
business. Decorating and tidying up are duties thatyou, agreeing a satisfactory price will be stressful,
anyone with a business for sale should prioritise.and perhaps even emotional. The business for sale
Next, look at the accounts. Is there anything thatrepresents years of your hard work; so adopting
cannot be explained immediately? Writing off bada reasonable, approachable but firm demeanour
debts shows that you are being realistic about thewill ensure that you get an acceptable deal.
true state of the business' affairs, and gettingStep No 5 - Completion!
shareholder loans repaid removes any suggestionSo the ink's dry on the documents and the
of improper or unwise dealings with relatedmoney is in the bank. You no longer have a
parties.business for sale, so you can relax, right?
Now may also be the time to seek professionalGenerally, yes; although make sure that you
advice on any outstanding legal or financial issuescomply with any post-completion restrictions, like
with your solicitor or accountant.refraining from carrying out a business nearby
Step No 2 - Do you need help?with a similar name.