6 STEPS TO SELL YOUR BUSINESS FOR THE BEST PRICE

Selling your business is not an easy feat. You need to dedicate a few hours every day to the task until you sign on the dotted line of the purchase agreement. It can take a toll on you emotionally and physically if you do not prepare a plan to orchestrate the deal. Also, selling at the best price should be your priority rather than selling quickly.

Whether you are selling to enjoy retirement, migrate to another country or for personal reasons, you should not sell it for peanuts. Thus, make sure that you get the right value for your venture when you sell your business online. So, here are a few steps that will help you get the best price for your entity.01. Get Your Business Ready for Sale

If you are selling because you are not making any profits, it can become challenging to find buyers. Every investor is looking for high potential entities that are well-established and generate a significant turnover. Thus, you must work on increasing your sales so that your business appears more viable to the buyers. Introduce strategies that will help in boosting the demand for your products.

Also, you should make internal upgrades to ensure the attractiveness of the entity. You may have to refurbish the old office setup or improve the capacity and capabilities of the employees through training and skill-building activities.02. Arrange Your Financial Data

You need to get your financial documents in order for due diligence by the prospective buyers. The data will also be required during the valuation process and may be requested by the lawyer you hire for the selling process. You must make the potential buyers sign the non-disclosure agreement before providing them with significant financial data about your company.

These include profit and loss statements, cash flow statements, balance sheets, tax reports, loan documents, bank statements, etc. Besides, you will have to create a list of the stock and equipment that will be part of the sale. You must also have the operation manuals and documentation of all the past projects ready for the handover.03. Evaluate the Worth of Your Business

As the owner of the business, you may not be able to attach the right price tag to your venture. Most entrepreneurs make the mistake of either pricing it too high or too low. Thus, you must hire professionals to evaluate the entity. They will take every aspect of the organisation into consideration to determine a realistic value.

The factors that are used for valuation by experts include assets, debts, stock, sales, cash flow, market trends, location, financial forecast, etc. The professionals offer a detailed report on the worth of the business that comes in handy in making the potential buyer understand the credibility of the pricing.04. Put Up Your Business for Sale

You can use dedicated websites for business buying and selling to advertise your business for sale. It is an economical way of selling your business online as it takes away the role of brokers from the process. You do not have to rely on them to find buyers. You can publish your ads on various similar sites and get qualified leads from them.

In addition, you must inform your employees about the change so that it does not come as a shock to the workforce. Some of them might want to leave the company, but you must reassure them that their position is safe, and it is only the change of the management.05. Shortlist Potential Buyers

All the enquiries and leads that you have generated from the business selling website and your network must be researched thoroughly. Find out about the financial capabilities of the potential buyers and their past experience. Ask them about their funding options and their expertise. Enquire how much time they will take to secure the funds and finalise the deal.

You must be able to identify the qualified leads from the phone calls and communication coming your way to avoid wasting time. Also, make sure that you do not pass on any business information before signing the confidentiality agreement.06. Prepare the Sale Contract

You will have to hire a lawyer to prepare a purchase contract with all the legitimate terms and conditions. It will include details of handing over the stock, equipment, intellectual property, business name, website domain name, social media pages, marketing plan, etc.

The office lease will have to be transferred to the new buyer and the outgoing owner will have to train him for some time during the transition period. Make sure that you leave room for negotiation in the asking price and then finalise the cost so that you do not have to sell at a lower rate.Endnote

If you intend to sell your business online, you must be aware of the steps that will help you get the best price for the venture. Make use of the tips mentioned above for a profitable deal.