| Selling your business is on of the most hardest | | | | 5. Work with a trained, business intermediary |
| and important things you'll ever do. These ten | | | | (business broker) from a leading firm. Try to find |
| step will get you started on the right path. | | | | one that only works on selling companies, not like |
| Remember every company owner needs a good | | | | real estate agents who sell businesses as a |
| exit strategy. | | | | sideline. A good firm will have a large network of |
| 1. Organize your financial records. Every buyer will | | | | offices to market your company well. You should |
| want to know the how well your company has | | | | not pay any upfront fees- the broker should get |
| been doing the last three years. You will need tax | | | | paid when you get paid. |
| forms, Profit & Loss statements and balance | | | | 6. Discuss market and buyer expectations. What |
| sheets. | | | | is the market like and what will buyers be looking |
| 2. Clean and repair your equipment and furniture. | | | | for. |
| No one wants to start out in business with | | | | 7. Understand valuation techniques. Many times it |
| malfunctioning equipment. Clean equipment shows | | | | will be one to two times the seller's discretionary |
| better when buyers come to look at your | | | | income (that is salary plus value of "perks"). |
| company. | | | | Consider getting a third-party valuation. |
| 3. Normalize your inventory. It should not be | | | | 8. Determine a good asking price. Too high and |
| higher or lower than necessary to operate the | | | | you will discourage buyers. Too low means you |
| business. | | | | will leave money on the table. |
| 4. Evaluate your financial needs post-closing. Think | | | | 9. Identify growth opportunities. Good prospects |
| about how much you will need to maintain the | | | | will make help make the sale easier. |
| lifestyle you are used to. | | | | 10. Maintain confidentiality. |