How to Prepare Your Business for Sale
Even if you’re not interested in selling your business presently, it’s likely that day will come when you’re ready to step into a new phase of your life and career. Whether you’re hoping to sell your business in the near future or it’s nowhere on the horizon, preparing for sale can have a massive impact on your business, organization, and viability in the future. Here are some things we recommend that you do to prepare now, regardless of your plans.
DUE DILIGENCE WILL COME
When you find the right buyer for your business and an agreement has been made, the buyer will conduct due diligence to ensure that they’re making a smart investment. This is an in-depth look into your financials, operations, and legalities of your business. Preparing to have a third party review all of your financial and legal statements is motivation to ensure that everything is in order. It’s also a reminder to tighten up any operational systems so that everything runs smoothly and everyone in your business understands their responsibilities.
INVEST IN YOUR LEADERSHIP
Buyers are often concerned with the employee and team dynamics that might affect the success of the business post-sale. Ensuring that you have a well-trained, competent, and loyal staff will make your business far more appealing to potential buyers. Investing in your leadership to mitigate conflict, hold staff accountable, and ensure goals are being met will position your business as a good investment.
MANAGE YOUR REPUTATION
When your business has a great reputation in the community it makes the purchase more appealing and can have an effect on the number of potentially interested buyers. Go out of your way to connect with your customers, engage in community events, support local charities, and build your brand. You can even consider hiring a publicist or brand expert to help you establish trust and loyalty with your customers, which in turn will look favorable when it’s time to sell.
If you’re waiting until you’re ready to sell your business before you invest in making your business ready, it’s too late. Experts agree that you should begin working on sale preparations 2-3 years prior to listing your business to negotiate the highest price for your business. Do you still have questions about how to prepare for the sale of your business? We’d love to hear from you. Connect with us here.