Business owners who are contemplating the sale of the business shouldn’t try to rush into the deal. Instead, you have to make sure you plan for the sale and the period after the sale. Proper planning now can help ensure that you don’t regret the sale in a year or more down the road.
One of the most important considerations is getting an accurate valuation of the business. An accurate business valuation is one factor that can affect whether you get a maximum return or not. While you should make sure that this step is handled properly, you have to also look beyond it.
You have to consider the difference between your valuation expectation as a seller and the valuation expectation of the buyer. The buyer’s expectation is probably going to be on the lower end of the spectrum and your expectation is going to be on the higher end. Having a realistic expectation for what you are going to get for your business is important as you go through the negotiations and the sale process.
You also need to think beyond the sale to determine what you are going to do with your life. You need to make a plan for your time. Business owners sometimes get bored after selling the business they poured their life into.
When you do find someone interested in your business, you need to make the process as easy and friendly as possible. While you aren’t expected to do due dilligence for the buyer, you can set out to make the process as simple as possible. Go into the process organized, ready to answer questions, and be sure you have your legal points in order. All of this can make the negotiation process and sale go as smoothly as possible.
Source: Entrepreneur, “The Key to Maximizing Return When Selling a Business,” Tensie Homan, accessed Aug. 17, 2016
