Getting Ready to Put Your Business Up for Sale

The small family owned neighborhood private business selling hamburguerYou’ve made the choice to put your business up for sale. Now you face two more decisions: Selling your company as is or investing significant resources to spruce up the appearance and/or functionality of the enterprise.

Just like when you’re selling a home, you must think about whether there are any minor issues that should be resolved before the business for-sale sign goes up. Beyond that, you’ll have to decide whether it makes sense for you to invest additional financial resources to address larger issues before you offer your business for sale.

What specific factors are the most influential in determining the business value of your enterprise? Do you have a good handle on all the pertinent operational numbers of your business? Potential buyers will assess cash flow, debt levels, and receivables.

A company’s reputation is a soft asset, but nonetheless is a critical factor in assessing a business’s worth. What are current customers saying on social media channels? Is there a plethora of negative reviews or a large number of positive ones? There’s value in a company that knows how to maintain a high level of customer satisfaction.

What are the firm’s proprietary assets? Do favorable contractual obligations add value to the business? When selling a business, it’s important to look at your business as a potential buyer would. There’s a lot to think about when selling a business. Let us help you do it right!