Selling your business is a huge decision. There are a number of factors to consider before selling your business including:
Obviously the sales process has to be carefully planned out to ensure the transaction goes smoothly and you make the most out of the sale while simultaneously ensuring the smooth running of your business. We will address the sales process in a future blog as this article aims to outline how to prepare your business in advance so that it is in optimum condition for sale.
Selling your business should be planned for well in advance
To prepare a business for sale, the seller needs to cut back on all unnecessary expenditure and re-organise a number of management and financial areas. This cannot be done overnight.
The following are a number of points that need to be considered when preparing to sell your business:
Business Value Drivers
So what determines the value of a business? By reviewing this list of drivers in conjunction with the above list you can begin to prime your business for eventual sale. Some of the most common value drivers include the following:
These are the kinds of questions a potential buyer will ask beyond the numbers when starting to value your business. Time spent ahead of the sale in dealing with these key factors will not only improve the market value directly but will also improve the profitability of your business, enhancing the market value even more.
We would recommend that anyone planning to sell a business should adopt a long term strategy, possibly as long as two years and seek professional financial advice in relation to valuing and selling the business.
Contact Deirdre McDermott Audit Director OSK for further information on how to prepare for selling your business or in relation to our audit and accounting services or call 01 439 4360.
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