Get ready to sell your business
Preparing your business for sale
When selling your business there are several stages that need to be completed in order to achieve a successful outcome.
Typical steps include:
- valuing your business
- preparing your business for sale, including taking steps to increase its value
- taking early tax advice to highlight issues which might affect your deal later - vital if you want to minimise the tax burden
- identifying potential buyers
- marketing your business
- meeting and negotiating with potential buyers
- completing legal due diligence with the buyer
- finalising the sale agreement and transferring ownership
Maximising the value of your business
In order to maximise the value of your business, it is worth spending some time prior to the sale getting your business into shape. This could include cutting costs, reducing debts and reducing excess stock to get your finances into good order.
Potential buyers are also likely to require detailed financial information, including audited accounts and forecasts before they will consider making an offer. You can help make the whole sales process smoother by preparing this information in advance. See preparing to sell your business.
Valuing your business
There are several methods of valuing your business. It is advisable to seek specialist help from your accountant or a corporate adviser. They will be able to advise you on an appropriate valuation method and help you get a realistic valuation. They will also be able to help you identify and market your business to potential buyers. See value and market your business for sale.