Introduction

In the event that the decision to sell a small business is taken, it is a kind of process that has a significant financial and emotional impact. Whether you call it a day, move on to a new business, or are simply seeking change, careful planning is key. Here is the selling of a business explained through a step-by-step approach that is very likely to be successful.

Figure Out the Value of the Business

Before joining your business on a list of similar reputable businesses for sale, price it first through a valuation. These might include:

The economy and how business has been getting profit or loss over the respective time.

The business’ assets (e.g., the inventory, the brand, and IP rights).

Reputation and customer base, industrial conditions of the brand.

The market which the industry operates under and the factors in that market such as trends and the situation of the industry.

If you want an accurate valuation, engage a business appraiser who is up to the task.

Organize Financial and Legal Documents

The competitors and the state of the industry are of great importance to the buyer who wishes to buy detailed records. Consequently, it is important that you have:

• Reports and tax filings that are recent (3-5 years).
• Contracts, leases, and supplier agreements.
• The personnel account and complete details of the payroll.
• The licenses and permits required.

The more complete the records, the more confident the buyer becomes and the deal is closed quicker.

Hunt for the Most Suitable Buyer

The core value of a business is the customer pool and if it is not marketed, it amounts to zero. Thus, the first thing that should be done when selling should be:

• Posting ad of business on sites like BizBuySell or sell a small business.
• Engage a middleman of businesses who would connect you to the customers.
• Talk to people you know who are employed in the same industry.
• Give them a loan as an incentive for the most potential buyers.
• Buyers will concern themselves more each passing day that the business is not being sold and it is left worthless.
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Strike a Deal: Negotiate and Finalize a Sale

After you found your buyer, you will have to negotiate the conditions, for example:

• The final selling price and the way the payment will be made.
• The length of the period during which the seller will be helping to get the new owner acquainted with the business and how it operates.
• An agreement according to which the previous owner is not entitled to compete with the business.

Work with a business solicitor in preparing the contracts and in any other relevant legal matters that will enable the business to change hands smoothly.

Conclusion

When exiting a small venture, take into account the factors of valuation, negotiation, and preparation, as they are very crucial in the deal. These steps will help you in realizing your business value to the fullest extent and paving the way for a clean exit.