Is it time for you to sell your business and start the next chapter in your life? While the process is inevitable for every small business owner, this important transitional period can be complex and overwhelming. Appealing to someone who wants to buy a small business can be challenging, especially during times of fierce competition. At Burns Valuation Consulting, we offer premium valuation and consulting services for local metro Atlanta, Georgia area clients. Here is a list of the steps you can take to sell your business without becoming overly stressed or anxious.
Establish Your Reason for Selling
You likely already have a good reason for wanting to sell your business, but it is important to formulate an appropriate response for inquisitive buyers. Will you be retiring? Are you dealing with important personal issues like a divorce or the death of a loved one that requires you to make changes in your professional life? Do you simply want to shift your focus to other business opportunities? Some people may be suspicious that you are trying to sell because the company isn’t productive or profitable. Therefore, be sure to establish a way to communicate the cause of your decision.
Determine a Timeline
Next, you will need to figure out the best time to sell your business. Are you in need of a quick sale so you can finance a new company or personal investment, or can you wait six months or a year to ensure that you receive the maximum return for your efforts? Knowing this information ahead of time will help in your interactions with potential buyers.
Invest in Professional Business Valuation Services
One of the most important steps in selling a company is establishing the worth of your business. This can be daunting and difficult for owners since remaining objective can be a challenge. Also, some owners may be experts in their industry, but aren’t familiar with certain factors involved with business valuation such as the local real estate market. When you hire a professional for your business valuation services, you can be sure that you will receive valuable insights and analysis that can help you receive the best price from buyers.
Find the Right Buyer
When small business buyers first become interested in the business, it may be tempting to get wrapped up in the excitement or fear and settle on a price that is undervalued. Even if you want to sell quickly, that doesn’t mean you should just take the first offer that comes in. In most cases, it can take between six months to two years to negotiate the terms of such an agreement. For best results, consider multiple offers and keep the information of potential buyers as backup in case your top choice falls through. Also, be sure that all the necessary documents are signed, and avoid accepting agreements that aren’t formalized in writing.
Do you need help creating a proper valuation for your company? Let the experts at Burns Valuation Consulting help you navigate the process. We will provide you with the tools, insights and resources needed to influence those who are ready to buy a small business in your industry. Our specialists are ready to help you plan your exit strategy. Contact our office for more details about our wide selection of premium services or to schedule a time for your complimentary 30-minute consultation.
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