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Pointers On How To Sell A Business

By Margaret Gibson


Most entrepreneurs do not take the time to contemplate on the procedure to follow when they need to change their ventures or close them. This is the case since many business people concentrate on expanding their business rather than thinking about how to sell them. All the same, the following are tips on how to sell a business that can be useful.

Define your reason well. Most people end up selling their enterprises for the wrong reason or due to desperation. This is quite usual with those firms that fail whereby owners will hurriedly reach such decisions making losses in the long run. Make sure your decision is worth carrying out and is the last resort.

Determine the price you intend to sell the company. The bidders will come with their quotes. It requires the seller to prepare early enough by conducting an audit including all the expenses incurred and investments made. Further, hire a third party to evaluate the firm preferably a certified public accountant to avoid an undervaluation or quoting an excessive price.

Ensure that you market the firm. There are many channels through which one can advertise a firm for sale. Ensure the business gets promoted through them to have a broad customer base. In the advert, include all the important aspects, like the activities in the firm and a couple of contacts that can be used to reach you. Also, ascertain that the numbers are working well.

Take bids from as many individuals as possible. The first client you come across will not necessarily have the best deal. If you take your time, probably you might fall for someone with a better price than the rest. However, you need to choose a convenient area to hold your meetings. Your office is a good area since they buyers will have a look at what they are about to purchase.

Have a reliable mean of the transactions that will get done. Of course, you need to think about the criteria to use in the business deal. This is necessary since most customers prefer making their payments bit by bit depending on the amount supposed to get paid or due to the lengthy process of acquiring the new venture. Agree on the time to complete the transaction and of course, choose a reliable financial institution.

Agree on a written contract. One should bind the agreement under a legal contract to safeguard particular interests. One needs to include a legal representative who is authorized by the state to facilitate such matters. Make sure that all the essential aspects of the transaction get included, and you have the proper documents as evidence. As well, beware of the repercussions that might follow in case of a breach of the agreement.

Prepare well for your clients. It is possible to end up unsatisfied with the sale if you are not careful enough. To avoid falling into such situation, raise your awareness with regards to the possible questions you are likely to face from the prospective clients and prepare for the answers to give. Understanding the process ensures that nothing goes haywire.




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