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Be Ready for the New Year: A Pre-Sale Checklist for Selling Your Business

Pre-Sale checklist for selling your business

Are you planning on listing your business for sale in the New Year? You may be ready to proceed immediately, offering it for sale “as is” and prepared to make price concessions to account for any of its unaddressed weaknesses. Or, you may have decided to delay listing it until you’ve made the necessary improvements to overcome its weaknesses and make it more attractive to prospective buyers.

In either case, you must first evaluate certain key aspects of your business and then assess each them. Through this process, you will be deciding whether your business is ready to present for sale, or improvements need to be made in order to attract prospective buyers.

The following pre-sale checklist is a great way to start preparing your business for sale in an organized and efficient manner.

  1. Flag areas of your business in need of pre-sale improvement.
    • Make a list of these areas and rate them as either: good, average or poor. The primary aspects buyers will look for include: legal condition, business image, business operations and organization, products, clientele, and transferability. Buyers are attracted to businesses with low risks and high rewards, and these are the aspects of your business they will look for when considering it as a possible purchase.
  2. Commit to a pre-sale improvement action plan.
  3. Create your pre-sale improvement plan.
  4. Keep your sale plans quiet while you prepare your business.
    • Maintaining a level of confidentiality is extremely important in the business sales process. If word of the sale leaks out to customers, suppliers, creditors, employees or competitors, this could instigate a negative reaction, interfering with your business’s operations and affecting its value.
  5. Add value to your business now.
    • Whether you choose to sell your business “as is” or make the necessary improvements to improve its value and attract more prospective buyers, this to-do list is a great way to assess the condition of your business and create an action plan going forward.

If you are ready to start the discussion of how to prepare your business for sale or to discuss a Business Pre-Sale Checklist, contact one of our business brokers today for a complimentary consultation. Call 317-573-2100 or email info@indianabusinessadvisors.com

Article: Bizbuysell

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Preparing To Sell Your Business In 2021

Will 2021 be a good year to sell your business? As we enter into the new year this could be a question you are asking yourself. In the midst of a pandemic and recession, many businesses will not make it out of 2020. However, there are many businesses that have been thriving that are attracting eager buyers.

Buyers are very interested in buying good profitable companies. As we look at the businesses that have been profitable this year, we see most in the healthcare, distribution, construction, manufacturing and service industries. These businesses have stood out in 2020 and buyers are eager to enter into recession proof markets.

If you are looking at selling your business in 2021 the time to start the process is now. The average time it takes to sell a business is 6-10 months. To expedite this process, here are some key things to get in order:

  • Financials
    • When it’s time to put your business on the market, make sure your financial paperwork is clean. Income statement, balance sheet and tax returns are just some of the documents a buyer will want to review.
  • Develop your exit strategy
    • When you sell your business, will you stay on during the transition? Or will you step away immediately to begin your next adventure? What happens after the sale is as important to think about as the sale itself, particularly if you have a team of trusted employees.
  • Determine your business value
    • Our office includes an accredited business valuation specialist who will work with you to determine the value of your business using an earnings multiple.
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How Long Does it Take to Sell a Business?

If you’re considering exiting your business, you may be wondering how long the process takes. While the process varies, most business owners can anticipate a six- to nine-month process from signing a listing agreement to close. However, some things impact the length of a business sale. In this article, we answer the question, “How long does it take to sell a business?” and share tips for a streamlined and profitable sale.

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How to Finance a Business in 4 Easy Steps

Before leaping into a new business opportunity, most have the challenge of securing working capital. Although it’s not an easy task, it’s essential to getting your idea off the ground. It’s also not one to take lightly, as the decision you make will stick with you for years to come, even after your business starts making a profit. You can set yourself up for a win by researching the different avenues available and deciding the best action for your specific needs. Read on as we evaluate four of the more common options owners consider when deciding how to finance a business.

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How to Scale Your Business Strategically

Everyone dreams that their business can become big and evolve to the next level. Unfortunately, however, not everyone possesses the smarts or business savvy to make those dreams a reality. If you are unable to scale your business, it will eventually fail or not produce the revenues you want. Growing a business requires calculated decisions to be made. Below are some ways you can strategically scale your business.

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COVID-19 Resources

In response to the disruption to businesses from the coronavirus, we want to be able to provide resources to help small business owners during this time. If we can be of a resource, please do not hesitate to reach out and contact IBA with your questions about the impact of this current economic state and the businesses we represent. 

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Have You Saved Enough to Sell Your Business?

As Indiana Business Brokers, we see more often than not, that the largest asset business owners have is their business. Some may have as much as 90% of their net worth tied up in this illiquid asset. The majority haven’t saved adequately outside of their business. Which means that when it comes time to sell the business, they are financially dependent on it to fund the rest of their lives. But as with any investment, it’s extremely risky to put all your eggs in one basket.

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5 Reasons Why Your Business Is Too Dependent On You

5 Reasons Why Your Business Is Too Dependent On You. If you were to draw a picture that visually represents your role in your business, what would it look like? Are you at the top of an organizational chart, or stuck in the middle of your business like a hub in a bicycle wheel? The Hub & Spoke model is a drive that shows how dependent your business is on you for survival. The Hub & Spoke model can only be as strong as the hub. The moment the hub feels overwhelmed, the entire system fails. Acquirers generally avoid these types of managed businesses because they understand the dangers of buying a company too dependent on the owner. Here’s a list of the 5 top warning signs that show your business could be too dependent on you.

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