The process from deciding you want to sell your business, to the time the business is sold can last as long as 5 years. To prepare yourself and the company it is better to break things down in stages.
Stage 1
Strengthen business operations.
You want any prospective buyer to view the company in a good light, to do this you need to start strengthening your business model as much a possible. You want to put as much value as possible on the business. Even if the business does not sell, this is good sound business practice, secrecy in this stage is vital.
Stage 2
Pre- sale objectives.
This stage starts when you have fully decided to sell the business. You need to put together your sales team, tax specialists, accountants and legal specialists. Get as many people as you can to subscribe to the fact that selling the business is a good idea. You need to compile all your sales related documents.
Stage 3
Initial marketing
Put out a few feelers to see what the response there is to selling the business. Try and get a few people interested, however you do not want the sale to become public knowledge just yet. Make a few calls and have a few meetings, just to get a feel for how your sale will be subscribed.
Stage 4
Due diligence
This can be a difficult time for a business as they need to divulge detailed information on the company. Make sure the people who are privy to this information are trustworthy and have signed a non-disclosure form.
Stage 5
Proposal, negotiation and closure
This is where numbers are discussed and agreed on, this is a busy time for lawyers and attorneys, they need to draw up satisfactory agreements and sort out contractual terms. After a price is agreed and all the legal work completed, agreements are signed, money changes hands and the new owner is given the keys to the front door.
Stage 6
Post sale
This part is often forgotten about and can be the most important. It is very important for the seller to make sure assistance is given to the purchaser. It could have an affect on your reputation or finances.
As you can see it is a long drawn out process, generally when you get to stage 3 you are committed to selling the business, this does not mean that the business cannot be taken off the market, it simply means that to do so will incur financial penalty.
If you would like any more information on this subject then please visit our website at www.bizseller4u.com
Peter Arkwright recently retired from the military; he is now the Managing Director of Bizseller4u Ltd - Providing business solutions in sales, advertising, funding, debt collection and recovery plans
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