Selling a business is not as easy as selling a car or house. Preparing for the process is critical in ensuring it’s as simple and successful as possible. Here are the steps to take when you’re ready to sell your business.
Step One: Consolidate and Organize Your Financials
A buyer for your business needs to see all your financials in one place for careful review. When prepping to sell, consolidate and organize all the information for your and the potential buyer’s review. The documentation should include the following:
- The last three years of federal tax returns
- The previous three years of Profit and Loss statements, plus the interim statement and balance sheets
- List of equipment on hand, including estimated value
- Inventory of any product still available that is saleable.
- Information on any real estate or property included in the sale, including appraisal and tax information.
Step Two: Determine the Value of the Business
Don’t give your best guess when it comes to the sale value of your business. When you’ve built it from scratch, you have an emotional and financial investment, so inflating the price is tempting. Instead, hire a professional to provide a business valuation. Setting the right price is critical for optics and getting the most money for your business.
Step Three: Put Together Your Team
Selling a business is a complicated process. Including experienced professionals will help make sure the sale goes smoothly and you get the best price possible. Your team should include your accountant, a business broker, and an attorney. All will work to protect you and your interests throughout the sale process.
When you’re ready to sell your business, start with an experienced legal team. Contact McCutchen McLean, LLC, to get started.