Selling your business will likely be the largest financial transaction you’ll ever make. Yet many smart and successful business owners try to sell on their own. Seldom does this result in a successful sale. Even more seldom does the owner receive market value. Remember that selling a business is usually a one-time event so it needs to be done right. Preparation is critical to a successful sale. Be sure you understand the process and have the right professionals working with you.
What you need to consider before you sell your business
When is the right time to sell? Pay attention to what’s going on within your company, industry, the economy and your personal life. To maximize your financial benefits at Closing, you and your business must be ready.
Think about potential buyers. This may include competitors, customers, suppliers, long-term employees or perhaps family members. Most often it is someone from outside your circle of influence.
Maintain records. You want your hard work to pay off in the sale, so be sure to have current, detailed records that provide an auditable assessment of your company’s financial position.
Determine your business value. Business value is determined by factors such as sales, earnings, performance, market/industry outlook, management team/staff, net book value, fair market replacement value, client-to-revenue concentration, company image, reputation and goodwill. But, in fact, most business owners have no idea what their companies are worth. To get a first read on the market value of your business, take the quick BEACON Sellability Score Survey and get you’re a read on your business’ value now.
Seek professional help. Regardless of your background, you need a team of experienced professionals on your side. The team should include a business broker, like BEACON Business Group, accountant, wealth manager, banker and attorney who have experience with business transitions. This will allow you to do what you do best—run the day-to-day business operations.
BEACON Business Group works exclusively with privately-held and family-owned Wisconsin and Illinois businesses with revenues of $1 million to more than $10 million. To provide the highest level of customer service and confidentiality, we work with a limited number of clients at any given time. To schedule your no-commitment business consultation, contact us in Madison at (608) 828-9990 or in Milwaukee at (414) 988-6022. If you prefer, email us at firstname.lastname@example.org.