If I sell the business now, will I get enough money to satisfy my needs?

Will I really improve my personal financial position, or should I wait a little bit longer?

Define priorities: Do I want an all-cash deal, so that I can wash my hands and be done with the business? (This will generally result in a lower price the buyer will be willing to pay.)

Am I willing to finance part of the sales price? (This usually results in a higher price being offered by the buyer.)

Am I looking for a buyer to continue my business traditions and carry on in a similar style?

Am I looking to protect my employees and ensure they are retained by the new buyer?

Have I taken all of the steps necessary to make my business as attractive as possible to a new buyer?

What will I do after the sale? Do I want to maintain a relationship with the business (perhaps working for the new owner on a part-time basis or as a consultant)?

Have I thought about how much time I will give a new buyer for a transition and training period?

Have I done enough to ensure that the business is not dependent on me being there, so that the new owners can take over and be successful?

Am I willing to sign a non-compete agreement with the buyer?

Is this the right time to sell, and can I do it without experiencing seller's remorse?

Clean the premises

Organize the books and records

Deal with any customer/vendor/employee issues prior to the sale

Try to increase revenues without sacrificing margin (increasing revenue is important to the buyer as they analyze trends)

Diversify the customer base (customer concentration is a risky issue for buyers and their lenders)

De-emphasize owner’s personal role in the business by not being the only decision maker

Get other employees involved in customer and vendor contact

Develop a management team or a right hand person

Build infrastructure to further reduce dependence on the owner

Reduce the number of family members working in the business, especially if they will be leaving

Reduce the amount of owner’s perks that are paid for by the business

Don’t live out of the business checkbook

Sell or remove unnecessary or personal assets

Adjust inventory to a normal level

Other smaller items include: update website, renew leases, eliminate unproductive employees, collect past due accounts receivable

Be sure to take a look at our “Due Diligence Checklist” for more information on how to be organized and efficient for your buyer.

Buyers may ask a variety of questions, ranging from personal to professional. Some questions and concepts to consider for a future buyer may include the following:

Reasons for the Sale - So, you’ve decided to sell your business. Why? Owners commonly sell for any of the following reasons: retirement, partnership dispute, illness or death, overworked, boredom, and/or succession strategy.

Business Attributes - Consider the business’s ability to sell, its readiness, and your timing. Here are some attributes that can make the business more attractive: increasing profits, consistent income figures, strong customer base, and/or a major contract that spans several years.

Recasting Financials - The primary reason you will want to recast your financials is to sell your business. Recasting your financials will help you show buyers the true profit of your company. You will do the following to your financials when you recast: Remove things that only happened one time or won’t happen again; Adjust rent and other expenses to market rates (if they are not); Remove owner’s salaries or adjust them to market (depending on the business and the reason for the recast)