Oftentimes, business owners feel unprepared for the length and complexity involved in selling a business. While you may have successfully sold a house or even a car before, it should come as no surprise that the experience of selling your business is far different. Let’s take a look at some of the things you should expect both before and during the months when your business is on the market.
You May Regret Not Planning Ahead
It is never too early to start planning for the time when you sell your business. Most sellers find that if they fail to plan years in advance, the outcome is that they sell their business for less than they were hoping. Even if you think that the time when you sell your business is many years away, taking active steps to prepare now will benefit you in the long run.
In addition to your business broker in New York City, New York, New Jersey, Pennsylvania, Connecticut, Rhode Island, Maine and/or Massachusetts, you may very well want to work with an accountant and attorney ahead of time to ensure that everything is optimal when it comes to your financial documents and paperwork. The money you pay to advisors now will more than pay for itself when you sell your business.
For example, you should make sure that you have detailed info on your assets and inventory. Now is the time to have your real estate appraised and any leases reviewed and updated. You should also focus on ensuring that you have a solid team in place, fixed any HR issues, and have the optimal organizational structure.
All of the work that you do to update and organize your business will help tremendously when it comes time to sell. Your business broker in New York City, New York, New Jersey, Pennsylvania, Connecticut, Rhode Island, Maine and/or Massachusetts can assist you with advance planning and strategy.
Your Transaction May Take Longer Than You Might Expect
Selling your business is a multi-step process, and there are usually unexpected delays. As stated above, the good news is that if you plan early, it will speed up the process. From the time that you get your business valuation in New Jersey, Pennsylvania, New York, Connecticut, Rhode Island, Maine and/or Massachusetts to the time that the funds are transferred into your account for the successful sale, it can be quite a few months or even over a year.
Be Very Practical
Try not to be overly emotional. Many sellers overvalue their businesses because they are thinking emotionally and not practically. Think about the sale from a buyer’s point of view. Would it make financial sense to that buyer to pay top dollar for your business and not be able to profit from their purchase? Your buyer will want to be sure that they can profit right away and certainly in the long term too.
In many cases, you won’t just be able to sail off into the sunset. Instead, you’ll be asked to stay on for awhile to share your expertise even after the sale goes through.
If you are ready for your business valuation in New Jersey, Pennsylvania, New York, Connecticut, Rhode Island, Maine and/or Massachusetts, please reach out to us today. But even if you aren’t yet at that point, Inbar Group can assist you to prepare. We look forward to hearing from you.
