If you want to maximize the price of your business, get your business ready for sale. It is that simple.
The best strategy when selling your business is to eliminate doubt for the Buyers mind. By eliminating red flags early on in the process, the Buyer will see less risk. Less risk will equate to more value.
Being ready will save you tremendous amounts of time and stress. Being ready will set your business apart in the Buyers mind.
So, is your business Sale Ready?
Here is a checklist to get you started:
- Company records are complete and up-to-date
- Notice to Reader financials are imperative to a sale. As a sole propieter, your tax returns and Notice of Assessments will be required.
- Signed, up-to-date contracts with all my clients, suppliers and partners
- Verbal contracts cannot be assumed by a new owner. Get it in writing to add value.
- Employee contracts are up-to-date and include the appropriate non-compete and non-disclosure agreements where necessary.
- Including provisions and contingencies in your employee contracts in the event of a sale will reduce stress for everyone when a transfer is complete.
- The intellectual property belonging to the business has all been properly registered
- This can include trade name. If they are not registered, they lose their value.
- The shareholders agreement with partners is up-to-date and covers different business sale scenarios
- If you are structuring the sale as a share sale, this step is imperative.
- The business has been structured, or restructured, to maximize tax efficiency. These need to be implemented 2 years prior to a sale.
- Consulting your accountant can save you thousands in taxes when you do sell.
- I have selected a business broker to help me sell the business
- Working with Larkspur Business Brokers facilitates the many phases of the deal and ensures the right Buyer transitions into the business.
- The intangibles that can impact the sale of my business include documented policies and procedures, brand name and reputation, the quality of the website and social media, longevity of the business, the location and the phone number, and many others. Call Larkspur Business Brokers for a complete list of intangible assets of a business.
- All the documents for the sale of the business are assembled in one place.
- Organized documents speaks volumes to the Buyer about your business. Make a solid first impression.
To learn more about getting sale ready, contact Larkspur Business Brokers today for a free consultation.
We work hard to get your business sold for the most value in the least amount of time.