Great news! You’ve decided to go for Business For Sale Tauranga, and it’s already one of the most successful businesses in the industry! Now comes the tricky part – actually selling it, and getting the highest price possible. In order to do this, you’ll want to follow these 5 steps to help ensure that you’re getting as much money as possible out of your company before you move on to your next venture.
Determine Your Business Valuation
If you’re serious about selling your business, there’s no more important step than determining a fair value for it. This will help you in your negotiations with potential buyers and can impact your ability to make a deal. One tool many owners use is an analysis of comparable businesses that have sold recently or are currently on sale; another is expert advice. You could hire a business broker to value your business, which could cost several thousand dollars, or get information from various online sources. Once you understand what others in your industry are selling for, it will be easier to figure out how much yours is worth.
Hire a Business Broker
Business brokers act as intermediaries between buyers and sellers in business transactions. Hiring a broker to sell your business is one of the smartest financial decisions you can make; it’s especially critical if you want to sell your business for a good price and you don’t have experience navigating complex negotiations. A qualified business broker will understand the ins and outs of the industry, so they’ll be able to accurately assess what your business is worth. They’ll also know how much time and effort to put into negotiating with prospective buyers so that you get the best deal possible.
Time your sale
Time your sale right and you’ll get a higher price. If you start too early, you’ll lower interest and scare off potential buyers; if you start too late, other sellers might beat you to it. Time your sale correctly and you might score several bidders vying for your business. Once you have agreed on the selling price with the winning bidder, they will want to close the deal as soon as possible so they can be seen as a savvy investor who acted quickly. With less time left on the clock, that means they’re more likely to put down more money upfront in order to seal the deal quicker.
Find Pre-Qualified Buyers
Most business owners who want to sell their business plan to receive inquiries from a high number of prospective buyers; however, many of these inquiries are not as pre-qualified as they would like. To avoid selling your business for less than you think it’s worth and losing potential buyers, use an intermediary such as Business for Sale Tauranga to get in touch with a short list of pre-qualified buyers. This will ensure that you receive serious inquiries from businesses that are actually ready to make an offer on your company. It might also help generate more sales leads than if you try and sell yourself.
Finalize Legal Documents
One of your biggest challenges in selling a business is making sure everything is done according to legal and tax laws. You want to be absolutely sure that you’re not leaving any stone unturned when it comes to finalizing sales agreements and transferring control of your company. To do so, take time with a lawyer or certified public accountant (CPA) to go over all documents associated with the sale of your business—no matter how mundane they may seem. And don’t forget about setting up new operating procedures: even if you’ve been running your business for years, there are things you can do right now that will make it easier for your buyer down the road.