So, you’re making the decision to sell your business, such a large financial transaction should not be entered into lightly and must be done with absolute precision to ensure you make the most out of your sale.
When selling a business there are a plethora of procedures that need to be considered before a seller can put their business on the market. Here are some hints and tips that you should consider when selling your business.
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Its all about preparation
Preparation is key, even if you don’t want to sell up straight away, being prepared can help to ease the stress and pressures of selling. It is advised to take 3 months prior to your sale to prepare, removing any red flags or nasty surprises for the buyer.
When starting the process of selling your business you should:
- Do some market research to gain industry knowledge.
- Recruit an expert to help with legal advice and due diligence
- Get your paperwork in order
- Stay focused on business, continue to grow and run your business as normal
Be upfront about everything from the beginning as the truth is always going to surface. Experiences investors will understand that business is going to have positives and negatives. Ensuring that you are transparent from the beginning will decrease the risk of the sale falling through.
The post-sale plan of action
The post-sale plan of action should begin from the start of the process as it is important for the former business owner to know that their capital and future is protected. In this instance, it is advisable to appoint a financial advisor.
If you’ve sold your business and you’re unsure of the next move you could consider:
- Put some investment into a brand-new venture.
- Revisit important documents such as your will and insurance
- Collate some savings for youngsters in the family
- Remain at the company as a director or mentor