Sell a Business


Sell a Business

SMART SELLER ATTITUDE :-

  1. KNOW WHAT IS BUSINESS COMPETETIVE POSITION IN CURRENT MARKET.
  2. A REALISTIC PRICE
  3. KNOWLEDGE ON POTENTIAL BUYER SUITABILITY

BEFORE SELLING NEEDS CAREFUL PLANNING

  1. CLEAN UP ALL THE ACCOUNTING RECORD (ESPECIALLLY BALANCE SHEET ITEMS)
  2. UPDATE ALL STATUTORY COMPLIANCE UNDER COMPANY ACT. EXP. AUDITED REPORT, TAXATION ETC.
  3. DRESS UP THE BUSINESS
  4. UPDATE THE OPERATION (THIS EFFORT WILL GIVE A BETTER POSITION FOR SELLER TO MEGOTIATE THE ASKING PRICE)

IF YOU WANT TO SELL YOUR BUSINESS, CONSIDER THE 7 STEP BELOW :-

  1. DETERMINE THE VALUE OF YOUR BUSINESS / COMPANY
    • 3rd party value can provide a realistic extimate business worth.
    • small business typically worth 3 to 6 times of their cashflow.
  2. CLEAN UP THE FINANCIAL STATEMENT.
  3. PREPARE YOUR EXIT STRATEGY IN ADVANCE
    • Owner an aging/illness
    • Lack of interest in succession from adult to childer.
    • competition treat

TIPS : PREPARE THE SELLING BUSINESS BEFORE YOU ARE FORCE TO SELL.

     4. BOOST YOUR SALES

"WHEN SALES IN DECLING, IS NOT THE TIME TO SELL"

     5. FIND  A BUSINESS BROKER

- to assist on preparing the prospetus

- to assist / enreach the potential buyer pools.

- to assist on due dilligence/veluation

     6. PRE-QUALIFY YOUR BUYER

     7. GET BUSINESS CONTREET IN ORDER - LEGAL CONSIDERETION/AGREEMENT   ETC.


5 COMMON MISTAKE PURING SELLING YOUR BUSINESS

ERROR 1#

PLANNING AHEAD OR WAITING TOO LONG TO SELL

  • waiting to long to decide to sell can cause many business owners miss the window at opportunity.
  • averge to sell 2 to 4 years.
  • long term planning is key successful in business sale.

ERROR 2#

NOT FINDING THE RIGHT PERSON TO REPRESENT YOUR BUSINESS

  • RIGHT BUSINESS CONSULTANT IS CRACIAL TO YOUR SUCESS.

ERROR 3#

THINKING YOU DON'T HAUE TO PROMOTE OR MARKET YOURSELF

  • YOU HAVE TO PROMOTE & MARKET YOUR BUSINESS.
  • BROKER CAN ASSIST BUT YOUR ARE THE BEST CONDIDATE AT YOUR KNOW IN AND OUT AT THE BUSINESS.

ERROR 4#

ASKING TOO MUCH

  • SETTING A HIGH PRICE AND UNREALISTIC WILL LEAD TO A DEAD END STREAT.

ERROR 5#

SELLINGTO WRONG PERSON

  • TAKE NOT THE FIRST OFFER BUT BEST OFFER.