You start a business from the scratch, see it mature as you guide it through various difficulties, and finally, you decide it’s time to let go of it. Nevertheless, the main question is when will be the right time and how you wouldlike to quit.
One of the best exit strategies is that you sell your business; however,selling a business can be a lot more complicated process than you might have expected.You need to do a lot of groundwork and support to help you accomplish this process smoothly.
Given below are some of the chief factorsthat can help you figure out your selling business:
Is your business prepared for sell?
Business for Sale Ontario is great place to list your business for sale and experts here suggest that when you decide to sell your business, give it at least 2 to 3 years to prepare your business before selling.Ensure that your business shows all the accurate figures of tax returnsfor at least last 2 years and exhibits high profitability growth. This will help you attain best price for your business, but you cannot expect to do all this preparation just in a month or two.
Business Evaluation by the potential buyer
Another factor to consider is how the potential buyer will value your business. How much the value the buyer will be providing to your business? Will he undervalue it? If your business is run by your family members,majority of the expenses might be included in the business expenses. It will show your business as a less profitable entity. This can affect the valuation done by the buyer and may reduce the proceeds you are expecting for your business. You can browse through business buy-sell places like Business for Sale Ontario to find out more about the business valuation.
Your expectation from the sale
You need to have a clear vision and plan about what you expecting from selling your business. What price you are expecting? How would you like to receive the payment? Are you in agreement with using seller financing? What are your terms and conditions while negotiating the deal? Moving forward with clear expectations will make you feel more confident about the success of the deal.
When is the right time to sell?
Usually people sell their businesses when they are facing losses and are looking for other opportunities. However, several consultants suggest that sell your business when it is performing at its best. It will fetch you more money as compared to when you sell the business on decline.
Have you chosen the right market?
Before selling the business, make an analysis of the presentconditions of the market you have chosen to sell your business. If market conditions are not right, you maynot get the desired price for your business. It is important that the market conditions be in favour of your business in order to nail the best deals through marketplaces like Business for Sale Ontario.
Who are the right buyers for your business?
When you put your business for sell, you will find a number of different buyers who will have different objective for buying your business. There are buyers who buy a business as it balances the current setups they operate. Some buyers can be in realityyour rivals. And there can be buyers who work with you in the same industry.
Can your business flourish without you?
If you are the one who run and takes all the decisions in your business, a buyer may feel that business is too much dependent on your presence. A good business should have the ability to run smoothly and generate substantial benefits even when the owner is on a break. It is important that your business is self-sufficient in order for you to sell it and get the best deals available in the market.
Are there any unresolved issues?
Unsettled issues can cause hurdles for you when you are selling your business; especially, if these issues are regarding ownership of the business, tax returns, bookkeeping, and patents, trademarks, or copyrights. You need to resolve all the older issues that can affect the valuation of your business.