Any business owner must consider the implications of selling a business at some future point. And it is best to be completely prepared. Even if you do not expect to sell your business, you should create a plan for that possibility. And you should also know what proceeds you could expect to generate were you to decide to sell your business right now. That plan will give you all the information that you as an entrepreneur need to evaluate all of your options.
Why do you need a succession plan?
For most businesses, there comes a time when the business should be sold. Estate issues, inheritance taxes, no heir to run the business, an illness or a wide variety of other issues can make selling a business the wisest or only thing to do. When that happens, you need to be prepared. You should start the planning now.
What do you need to do to prepare?
Prepare your financials to be completely accurate and “bullet-proof”. Is your CPA adequate to the task of preparing statements that will meet the scrutiny of a potential buyer? Do you need a full audit, or are write-ups adequate?
Make certain that all operational details are functional. Critically evaluate all staff, space, inventories and other working parts of your business to see what holes need to be filled. Create a plan to correct any shortcomings that you see.
Inventory all of your assets. Do an inventory of your fixed assets as well as products for sale or in process. Make certain that the figures synch up with the figures you are carrying on the books. The value and condition of assets can make a difference when you are selling a business.
What are your next steps?
Download a guide to selling a business to give you a little guidance on preparing.
Finally, it is wise to look for competent advice. Selling a business can be a once-in-a-lifetime event. Seeking the advice of a firm that buys and sells businesses every day will help you maximize the value of your sale.
Whether you want to sell today, or just plan for an eventuality, call the experts at http://www.stonyhillbusinessbrokers.com.