Preparation

Preparing the Business For Sale

There are numerous aspects one need to consider when selling a business. Below I have tried to summarize the biggest areas potential sellers need to address before and during the selling process:

1. Determine Your Goals in Selling Your Business

• Define and thoroughly evaluate your reasons for selling
• Consider what alternatives there might be and determine your best option
• Work with a financial planner and tax lawyer to structure optimal transaction strategies and your best approach to managing the proceeds of the sale
• Determine if the proceeds of the sale will provide the funds you require to sustain your lifestyle
• Determine the best possible timing for you

2. Provide Detailed and Accurate Financial Information

• Ensure that your books, records and financial statements are up-to-date
• Prepare at least 3 years worth of financial history
• Provide appropriate financial projections and business potential forecasts

3. Present Your Business Professionally

• Ensure that you have high quality business marketing materials
• Use sequenced presentations with incremental amounts of information
• Advertise confidentially across a broad spectrum of media
• Ensure that strategic and competitive buyers are carefully and confidentially explored
• Maintain your operation in top shape so that any day of the week it is ready to present to prospective buyers

4. Work Harder than Ever to Achieve Peak Performance

• Keep running your business as though you plan to have your best year ever
• Don’t get distracted by the sales process
• Don’t slowdown in any area of your business
• Don’t stop marketing or try to trim expenses