Time may come when you have to move on from a business that you created and have to sell it, if you’ve reached that point, you need to perform a little planning and preparation to ensure a seamless transition, while also increasing your Kelowna business for sale’s attractiveness to prospective buyers. Here are four areas that you must focus on.
Potential buyers will likely ask for at least two of your latest annual financial records, so make sure all your accounts are in order, with all income and expenses included. Be consistent in your document’s format and presentation. You will also need to supply up-to-date supplier and customer contracts. Be sure the financial info you provide is complete and accurate, and if there are any inconsistencies, be prepared to have a good reason for it.
Change of ownership can have a negative impact on your current employees, therefore, the key employees that you want your new owner to retain should have formal contracts in place. Likewise, you may have to provide incentives for them to convince them not to leave the business when it is sold.
The asking price for your business
In an ideal setting, the asking price for your business will be based on the surrounding industrial and economic conditions relevant to your business. However, if you want to sell your business fast because of an emergency need for the cash, then you may have to make a lot of compromises and possibly even sell your business on the cheap. Personal reasons aside, the valuation multiple that you use will relate to the time value of the funds, potential for growth, and the amount of risk.
Clarifying what’s for sale
Specify whether you are selling the entire business or are simply selling shares. Identify the assets and working capital that will and will not be part of the sale. Adjust the price accordingly if there are assets or liabilities that you want to exclude.
Business brokers in Kelowna
A little professional help can go a long way. Work with a broker of business for sale in Kelowna such as Kelowna Business Brokers to ensure all your bases are covered so you can have a worry-free transaction.
(Preparing Your Pre-Sale To-Do List, INC.com)
(Preparing to Sell Your Business, Entrepreneur.com)