Selling a business can be an extremely complex process. Many strategic decision making in the top board room factors can influence the final outcome and the timeframe. The process can be complicated and time-consuming, and there are a variety of risks that could fall on the unsuspecting business owner. They include failing to sell the product at an amount that is lower than what was expected and the breach of confidentiality.
With the proper preparation and guidance you can take the necessary steps to ensure that your sale is a success. Be realistic about your expectations. This includes assessing your own personal readiness to let go and preparing for the financial impact of the sale and the determination of how much your business is really worth.
You should also be prepared for any inspections that may be required. This includes ensuring that your financial statements are neat and tidy, obtaining copies of all contracts currently in place with suppliers or clients and creating an org chart to show the flow of information. It’s a good idea to invite interested parties to sign a nondisclosure agreement to protect your confidential data.
You must be able to answer any questions about your reasons for selling and why you believe that the time is right. It’s crucial to explain how your business will continue to grow under the new owner. Consider how the change will affect your employees and how you can manage their emotions. Find a buyer that can carry on the legacy and mission of the business.