Selling Your Business

Will you sell your business in the next couple of years? If you plan to, the steps you take now can help you get the most for your firm.

PLAN AHEAD

Finding the time to plan your eventual business sale can seem daunting when business owners have so many day-to-day tasks to complete. However, selling a business can be stressful, whether it leads to retirement or because the owner needs to sell it for health or other reasons. Preparation will matter.

Start by finding a valuation expert who can identify a fair value for your firm. This expert will take into account your company’s market share, profitability, future viability and more. For example, a one-person design firm may have nothing but tangible equipment to influence pricing, since the one person responsible for success will be leaving. Conversely, an insurance agency with a reputable staff and booming business might fetch top dollar.

OTHER STEPS

In your company’s final years, continue to hire, upgrade, grow and market as if you are in this forever. These habits can only increase the value of your concern. And work with an accountant to have all the relevant numbers at your fingertips, from gross and net business income to payroll and proof of tax compliance.