1. Determine Why You Want to Sell
The first clarity you need to start with before selling your business is why you actually want to sell. Below are a list of reason people want to sell
• Lack of capital to continue running the business
• Retirement of business owner
• Death of business owner
• Change of interest of business owner
• Inadequate funds to explore the total potential of the business.
Stating clearly the reason to want to sell a business gives direction for everybody involved in this process and could help a business broker advise you better on what to do. For example, if you want to sell a business because of low working capital or loss of business owner, the focus of a business broker is to try and close the transaction as fast as possible and this could be making sure your asking price is competitive and flexible. Vice versa.
2. Prepare needed Documents
The following documents would be required to pull your business sale through.
• Audited Financial Statement dating back to 3 – 5 years
• Last 3-year revenue (minimum)
• 5-year profit projection
• Business tax returns
• List of business assets and liabilities
• Inventory list with value detail
Ensure you review them with an accountant. If you need an accountant to work with you, contact us on firstname.lastname@example.org
3. Business Valuation
Get a business valuer to determine the worth of your business. This will help you to avoid inflated/below par prices and bring credibility to the asking price. If you need a business appraiser/valuation for your business, please contact us on email@example.com
4. Talk to a Business Broker
CompexAfrica offers a technology that aids the buying and selling of your business and over the last 1 year, we have built relationships with brokers. Brokers tend to have a network that can be leveraged on to help you sell your business faster.
5. Get Your Timing Right
A business sale may take between 6 months to 2 years on the average with that in mind, it is important to start preparing for sale well in advance, preferably at least a year in advance. This time can also be useful in preparing the business operation for your exit.
6. Finding a Buyer
Having done all these, you stand a good chance of getting a buyer. Get in touch with us today and you would be glad you did!