(Newswire.net — October 5, 2022) — When the COVID-19 pandemic hit, many businesses had to close their doors while others had enough capital to hang on for quite a while. It was a rocky couple of years, even for large corporations, but now things have started to settle down. Thankfully, the economy seems to be doing better and recovering, even if that recovery is slow.
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Regardless, many business owners have decided to sell their businesses and either start something new or move into a new industry. If you’re one of those business owners and you’re ready to sell your business, these tips will help.
1. Work with a broker
You’ve put years of hard work, time, money, and energy into building your business. You don’t want to sell your business to just anyone. Sure, you can make a profit no matter what, but if you’re like most people, you care about what happens to your business once you leave. This is where a broker can help.
Hiring a business broker for mergers and acquisitions is the best decision you could make. When you work with a broker to sell your business, they’ll identify your ideal, qualified buyers, negotiate the terms, and close transactions efficiently. These are all tasks that are better off in the hands of an experienced professional.
A broker will do more than just advertise our business. They’ll help you with market valuation and a marketing plan, and legal experts will assist you with agreements and all legal documentation. The expertise of a broker is unmatched. No matter what the state of the economy, you’ll always benefit from working with a broker when selling your business.
2. Get organized
The level of organization in your business will directly impact your ability to sell. Nobody wants to buy a business that they need to organize themselves, especially when it comes to finances and taxes.
Before you put your business on the market, make sure your finances are in order. You’ll need to present accurate numbers to potential buyers, and you don’t want to have to explain any deviations. If you haven’t been managing your finances in an organized manner, it’s not too late, but you’ll have to hire someone to help you get things in order.
When it comes to your taxes, make sure you have at least seven years’ worth of tax filings available. Whoever buys your business will need access to these documents. If you don’t have them, call the IRS to get copies mailed to you. If you skipped filing for many years or are behind on your tax payments, get caught up or at least have a payment plan in place with the IRS before putting your business up for sale.
Owing taxes will drop the value of your business since it will be something the new owners will need to deal with, but it’s not always a deal-breaker. However, disorganization is a deal-breaker for many people.
3. Assess the true value of your company
Knowing the true value of your business will help you get the full value of all the hard work you’ve put in over the years. This valuation is critical to avoid pricing your business too low.
Don’t be afraid to list your business at full value. With low-interest rates, businesses are selling 16% higher in 2022 than they were in 2019 before the pandemic hit. If you’re not sure what your business is worth, connect with a business broker to get a professional evaluation. They’ll even help you find ways to increase the value of your business before you place it on the market.
4. Focus on good buyers
Qualify your buyers and don’t bother with anyone who doesn’t meet your requirements. Again, getting quality buyers is easiest when you work with a broker. They’ll have a database full of people who want to buy a business and they’ll be able to match you with the right prospective buyers.
Working with a broker is like having an automatic pre-screening process. Brokers won’t even bother with potential buyers who don’t fit your ideal criteria in terms of factors like income, demographics, and education.
Don’t wait too long to sell
The economy is recovering, so don’t wait too long to sell. Take advantage of higher sale prices while interest rates are still low. Talk to a broker as soon as possible and get your business on the market before interest rates rise.