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Selling your business takes planning and careful documentation of information about the business. The financial statements have to be brought current and also all past information say for the last five years should be reviewed for accuracy. A current inventory should be prepared if the business is inventory sensitive. A list of leases Wholesale Jerseys , legal obligations, loans to be assumed and other obligations should be made and classified. In short, all money matters of any importance should be noted and documented.
Expert help with the numbers
Any projections of future business should be explained and the facts that led to the conclusions should be detailed. Any problem areas should be listed and how the present owner or the new owner can resolve them. If a lease is about to expire, can it be extended and if so at what expense. If major repairs are required to upgrade the building that comes with the business Cheap Jerseys From China , these should be noted and the estimated cost of the repairs. Once all of this is done, the owner should decide how he is going to market his business so as to attract prospective buyers. Is he going to go it alone or hire someone to help in finding a buyer? How is the asking price of the business being set and using what criteria. Is a professional business broker going to be brought in to help with all of these questions? The suggestion in this deal is an expert can be worth the expense as they can find buyers, help to set a realistic price for the business and make up a proposal that puts the business in the best possible light. They can provide the marketing that will help to sell a good business in a quick and efficient manner. The longer a business is up for sale, the more questions prospective buyers will come up with. A business that is profitable and selling at a fair price should sell rather quickly. In fact such a business may find itself in the happy situation of a bidding war between buyers.
Owner help and other agreements
The owner should have the answers to whether his employees will stay if the business is sold. He should have a valid reason for wanting to sell the business.
Details such as cleaning up the office or the work area while minor in the scheme of things can be major as to first impressions. People are influenced by their first impression and this should be made positive if at all possible. Clean and efficient is the key impression that helps to sell a successful business. A sloppy environment gives the impression of a sloppy operation. Clean and snappy is the impression the seller should present to prospective buyers.
Make sure any agreements you have between the business and a third party are transferable to the new owner. Do not get caught unprepared to answer this type of question. The new owner would be foolish not to want to know these details. This information has the power to make or break a pending deal. If the building you are located in is rented to you Cheap NFL Jerseys , make sure your rental agreement can be transferred to the new owner. The secret here is to keep the purchase as simple as possible. Try to keep these details from becoming major discussion points.
Do your homework and know the answers to obvious questions like these. If you are asked a question that you are not sure of the answer, do not guess but state you will get the answer as soon as possible.
The presentation of facts
You have gone to the trouble of collecting all of the relevant facts associated with your business. Put them a pleasing presentation form. Have the numbers certified by your accountant. You do not want the buyers people to find errors in your information or the math. Make sure the information is presented in a readable form and it can quickly be understood.
A business broker can take all of these concerns off your plate. They do this all of the time and probably has staff that ensures the information is presented in a professional manner. Impressions as stated before are important and this is one of the areas of expertise that a business broker brings to the deal.
Setting a price and help doing it
A certified broker can help to set a realistic price for the business. The certification means they have passed a detailed exam on how to come up with a price for the business. They do not just pull the selling price out of the blue, but have valid reasons for it that can be explained to the buyer. This gives the price creditability in the eyes of the buyer and it is from an unbiased third person. This can be important in getting a sale, which is completed near your asking price.
They can also be very good in the difficult negotiation stages of the sale. They can keep the buyer and seller appeased and moves the deal forward without the tenseness that can develop during serious deal making. Since they are seen as a somewhat disengaged third party Cheap Jerseys , they can remain cool under the strain of making the deal. Business Brokers are inevitable in selling a business. Check out our article on Role of business brokers in Selling a business for a clear idea.
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