Preparing for the sale of your business should start well ahead of when you want to sell, preferably a year or two ahead of time.

The preparation will help you to improve your financial records, business structure, management team and customer base to make the business more profitable. These improvements will also ease the transition for the buyer and keep the business running smoothly.

Here are some considerations that you need to think about during your process:

  • Selling your business starts with identifying your reasons why, making sure your business is in the shape it needs to be in to be sold, and the timing of the sale.
  • Preparing for the sale at least a year or more in advance is critical, as it gives you time to improve your financial records, customer base, and other factors that can make the business more successful.
  • Determine the value of your business so that you can price it appropriately. Consider hiring a business appraiser.
  • Make a decision as to whether you’d rather use a business broker/Investment Banker, or if you have interested financial or strategic buyers, negotiate the sale yourself.
  • Organize your financial records and tax returns dating back a few years and go over the details with an advisor to assure they are in compliance with GAAP and management addbacks have been properly identified.
  • Finding a buyer is a huge undertaking. Once a good buyer is found, there are a series of financial screenings and other steps that need to be taken to keep the process moving.
  • Don’t spend the money all at once. Take the time to work with a financial professional and determine how you want to invest or otherwise use the money.

At Accession Capital Advisors we work with Family and Generational businesses to help guide you through the process of selling your business to achieve your desired outcome. If this is something that is on your mind feel free to reach out to Pete Ferraro for a free consultation on how we can help you work through the challenges of transitioning your business to the next generation.