IBA No Comments

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

IBA No Comments

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.