Taking the step to selling your business is an impactful decision. It’s natural to have questions, so we’ve put together a tutorial to help you understand the process. In our experience, there are a few things you should consider.
Are You Ready to Sell?
The first step in selling your business is a personal one so we’ve come up with a self-assessment questionnaire to help you.
Have you considered family members, key employees or other people in your business circle as successors?
Have you been thinking about selling for a while & are committed to the idea of selling? What are your plans after you’ve sold?
Selling your business is a team effort, and your active participation is essential to making this a smooth and successful process.
Is Your Business Ready For Sale?
Make sure all your documents are up to date, renewed and in order such as financial statements, leases, contracts, and more. The goal of all this is to be able to make the due diligence process as smooth as possible.
If possible, we recommend that you have effective key employees, who can manage themselves independently. Key employees who are willing to remain through the transition will contribute to the value of your business.
What is my business worth?
Determining the value of your business is complex. Not only do we take into consideration your company’s historical performance, but also industry outlook, market conditions, contracts, location, lease, financing capacity, and your willingness to remain in the business during the transition period amongst many other factors.
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WHAT DOES THE MARKET LOOK LIKE?
The number of businesses for sale is increasing
With the rising number of retiring business owners, it is projected that the number of business for sale will increase over the next few years.
Buyers are educated & seek growth potential
There are many sources of information that buyers can use to prepare themselves for an acquisition. This means that properly positioning your business on the market is more important than ever.
Diverse financing options are available
There are many ways to finance a business with banks and other lenders, as well as loans and grants available from different levels of government and local organizations.
Choosing a Winning Team
Working with a team of professionals will help you achieve the sale of your business efficiently. Business brokers work in tandem with your accountant, lawyer, and fiscalist, to oversee the process. Business brokers are the “glue” that keep everything together, bringing the transfer process to the finish line.
OUR PROVEN 10-STEP PROCESS
When preparing to sell your business, it is essential to maintain sales & profitability steady or better yet, show an upward trend. This is a key consideration for most buyers.
Be prepared to provide key documents to your business broker in order for them to capture the maximum value of your business & provide you with a Most Probable Selling Price based on comparables, market conditions and industry trends.
We will develop an appropriate marketing strategy & a comprehensive set of marketing materials to highlight the value of your business. Your participation will be invaluable for this step.
Exposure to local & international buyers is maximized by using an omnichannel approach all the while maintaining confidentiality.
Buyers with a high level of interest for your business may request a site visit or meeting before putting down an offer.
A business broker will help you navigate incoming offers to arrive at an accepted offer. It will usually include conditions such as due diligence, financing and inspection.
This is the stage where the buyer will confirm information that you’ve provided about your business such as contracts, financials & market demand.
Generally, the buyer’s lawyer or notary will prepare the deed of sale for the transaction. Your legal counsel will review it for you before signing.
A joint effort between your professional advisors & those of the buyer will ensure all the paperwork is ready for you on closing day. Congratulations!
Finally, to ensure a smooth handover of the business, you will transfer your knowledge to the new owner. The length of time and compensation, if applicable, will depend on what is agreed in the Purchase and Sale Agreement.