Necessary Steps For A Successful Sale Of Your Business
Posted by: Brookside Admin
Selling your business can be a complicated process if you are unprepared. Forming an exit strategy, and succession plan if necessary, are important in order to ensure the safety of your business and that you get a fair return. At Entrepreneur, Michelle Brennan Hall published a few suggestions for owners who will soon be selling their business. Brown Kinion and Company provides a number of services to help you through this process as well.
- Communication with clients
Customer retention is a key piece of many buyouts. With that in mind, it's important to communicate with your clients to assure them that a well-crafted plan is in place. A business being sold to new ownership is often cause for uncertainty from customers, but that can be alleviated through communication. Ensure them that the process will be seamless and that the service or products you've been supplying will stay at the same high quality.
Without an accurate, up to date valuation of your business, many deals are doomed to fail. Undervaluing your business results in you getting less than fair price in the sale. Overvaluing the business may net you an initial agreement, but that is likely to break down as the process goes on and the true value becomes more clear. Avoid these issues by calculating an accurate value, which includes understanding key factors of your industry and what sets your business apart. Bringing in your potential buyer to this process can also be helpful.
- Mentor the buyer
To properly ensure the future success of your business, many owners prefer to have a standing relationship with the buyer. This can be achieved by singling out potential future owners who already work within your organization, or by seeking out other professionals within your industry. Be sure you're being realistic about the individual you've chosen as a potential buyer. For example, if the CEO of your company needs sales experience, don't expect to be able to target anyone without it. Your mentoring will be more worthwhile with someone whose skillset already fits the profile needed.
- Know your business
This sounds like a simple final step, but it really makes all the difference in finding an interested buyer. You should be able to explain customer cost, efforst to drive down costs, and plans for growth. If these are easy for you to line out, you'll find many more qualified buyers with interest because it makes your business seem much more organized and simple to operate.
For services related to business sales, like valuations, succession planning and more, call the CPAs and experts and Brown Kinion and Company.