Step By Step Guide to Sell a Business Quickly

Selling a business does not happen overnight. It is a huge responsibility that needs to be passed on to a qualified buyer. It entails careful planning and transition for the best return on investment. Most entrepreneurs think highly of their venture and feel that buyers will make a beeline to acquire it. However, they have to do a lot of running around to find the right individual with sufficient funds, experience, and passion for taking the business forward.

Sometimes, it may take years until they can close the deal. Thus, it is essential to follow the proven process of selling a business faster than expected. Specific actions can expedite the course and make it easier for entrepreneurs to find their company’s best successor. So, here is the step-by-step guide that can make the sales process quick and effortless.

1. Get Your Documents Organised

The first thing that every buyer examines is the financial stability and profitability of the business. Thus, you need to be prepared with the documents to avoid delay. Make sure that all the financial data is up to date and accurate.

Adjust your business plan if required for sale and include all the financial projections and budgeting after consulting the accountant. Organise all the other documentation needed for the handover, such as organisational structure, business model, operations manual, policies, customer database, employee records, payroll, suppliers list, contracts, lease, loan documents, etc.

It is essential to maintain a positive bottom line and cash flow to attract a large number of buyers. So, focus on generating profits and eliminating cost-intensive and redundant activities. Also, prepare a non-disclosure agreement to prevent your confidential business information from being leaked to competitors.

2. Do the Business Valuation

Determining the correct value of your business to price it correctly. If you wait until identifying the buyer, it can slow down the sale process. Thus, ask your accountant to research the market trend for the selling price of similar businesses and assess the cost of all the tangible and intangible assets to arrive at an appropriate value.

It is essential to add a few more thousand to the price before you begin to sell business online. It will help to keep some room for negotiations and increase your profit margin.

3. Market Your Business

Selling the business through the creation of a listing on a business buying and selling website is the best way to reach interested target audience. These websites are visited by aspiring entrepreneurs who have the required funds and are looking for high growth ventures.

You can also hire a business broker to help you with the enquiries generated from the online listing and screening of potential buyers. Delegating the workload to a professional improves the efficiency of the task and reduces the time spent on it.

4. Meet the Qualified Buyers

Once the broker shortlists qualified buyers, you can come into the picture to answer their questions related to the business. Share all the required information and documentation to help them with their due diligence. Also, ask for their financial records to determine their financial capability. Check their bank statements, previous employment records, credit score, debts, etc.

Enquire about their financing plan and the payment method to ensure that you have found the right buyers and are not getting duped. Do not settle for deferred payments and ask for upfront disbursement to reduce the risk of fraud or default.

5. Negotiate and Close the Deal

Closing a deal with a client is different from the way you sell your business online. The latter is a life-changing decision, and its output paves the way for the rest of your life. So, putting your emotions aside and dealing with the buyer professionally is essential. During the negotiation stage, it is vital to maintain the threshold point for the final price.

Make sure you stay within profitable limits and do not bow down to the pressures of the buyer. Although you wish to sell quickly, it does not mean that you must incur losses. Keep your future plans in mind while negotiating and finalising the deal.

6. Sign the Contract and Pass the Baton

Once you are on the same page with the buyer about the price and other terms of the sale, ask your lawyer to prepare the contract. Get the agreement signed and transfer all the other contracts and intellectual property to the new owner. At this stage, you need to inform the employees and make them a part of the handover process.

Familiarise the new owner with the staff and processes and stay back for a few weeks for a smooth transition. Make sure to introduce him to the suppliers and stakeholders and answer all their questions. After he is settled in the position, you can exit with your profits earned from the sale.

Conclusion

Selling your business with the help of a systematic procedure can save a lot of time and effort. So, utilise the steps mentioned above and get relieved of the responsibility quickly.