the short story project


Samuel Jaccobs

Selling A Business

When selling your business you need to carefully consider certain aspects. Here are a few reminders of things you should consider prior to planning your exit.

Long and hard, you have worked to build your company. But you’re considering selling, for some cause. This can be a challenging endeavor filled with questions that seem infinite.

How does your employer value you? How are you selling it? How do you bargain with a prospective purchaser? What moves are you taking to put the deal to a close? These are only a few of the problems that must be dealt with.

It can be financially satisfying to sell your company and provide you with the personal satisfaction of knowing that what you produced will continue. Plus, you can give someone else the opportunity to be the owner of a small business.

The bottom line is that you will need some professional help; during the buying or selling process, an ccredited Business Advisor can be a valuable resource.

Even one or two years in advance, prepare ahead. You may need to take concrete steps, including making the company more profitable and writing documents that will benefit a customer, in order to obtain the best deal and ensure the company’s continued success.

The following questions you should be able to answer are:

Why are you selling your company?

Why should they purchase your company?

Is it the best time to sell?

In general, buyers evaluating your company would need financial records, including tax returns and a current balance sheet, for at least three years. As customers may want to see any seasonal variations, you should have the most recent 12-month financial statements every month. Have a list of selling properties and either the existing book value or each one’s supportable value. Permits, licenses, leases, client and seller contracts, supplier lists, and marketing materials are other information that may be useful to a buyer.

It is a complicated process to put a dollar value on your business. A professional appraisal will give you an idea of what your company is worth and will help you set the price you are looking for. It will also inform you if there are poor areas before you put your company on the market that you might be able to fix.

Main aspects to remember include:

Worth of properties


Earnings or discretionary flow of cash

Application of a multiple to discretionary cash flow


Usually, the advisory team includes your lawyer, your accountant, maybe a company broker or realtor, your lender, and yourBusiness Advisor.

How are you going to market your company for sale? Determine your method, prepare a marketing kit and execute your course of action. Are you negotiating with potential customers comfortably? If not, or if you have an emotional connection to the business, using an intermediary, such as an agent or broker, can be helpful.

Make sure that you are willing to meet potential customers and answer their questions. At any time, keep the company ready to be seen.