According to Handy, selling a business is a complicated process that requires proper planning and many considerations. It can be one of the most important financial decisions of your life and you have to approach the process with caution to make the most money and do it fast.
Here are a few steps you may follow to sell your company fast:
- Make sure the accounting records are in order – A good track record of your business reveals the future of your business and it’s one of the best ways to convince potential buyers. For that, you need to review all the accounting records and make sure they highlight a positive picture.
Here are a few important records that you must keep updated at all times:
- Cash flow forecasting and management.
- Annual business budgeting, planning, and forecasting.
- Metrics and dashboards such as inventory turnover and cost of ordering inventory.
- Financial statements that comply with accounting standards.
- Industry benchmarks and analysis reports.
- Make sure the business operations are transparent – You can sell your business quickly if you can make it easier for your potential buyers to understand how to run it. For that, you need to keep business documentation that deals with routine tasks, fulfillment, billing, and production.
Here are a few important business documents that can help:
- Organization chart.
- Current customer and supplier contracts, employment agreements, etc.
- Procedure manual
- Documentation for automated processes such as software for invoicing.
- Hire a qualified broker – An experienced broker can help you with selling your business and allow you to relax knowing that you would get the most appropriate deal sooner. A qualified broker who is familiar with the general economic conditions of a specific industry can help you with a proper business valuation. They can also help to develop a better marketing plan, written materials, and more to promote your business suitably identity more prospects.
Plus, they can help you identify and navigate the personal side of the company sale such as why you want to sell your business. It’s one of the first pieces of information that a potential buyer would want to know.
- Prepare for a smooth transition – Once you find a suitable buyer who is interested in purchasing your business, you must make sure you can provide them with all the necessary documentation. Thus, make sure to keep a complete and organized set of records that prevent any objections and highlight the true value of your business.
After the sale is finalized and during the takeover of the business, it is important to inform the stakeholders (employees, customers, vendors) and communicate well to create a smooth after-sale transition. Also, make sure you are available to address any concerns regarding the sale and future of the business.
Handy believes that you should always stay in contact with two to three potential buyers until a deal is finalized to improve your chances of selling your business. Also, make sure to pay attention to the bill of sale, written agreements, and the security agreement to prevent disputes.