Whether you own a startup or a medium-sized company, a shop or a website, chances are that you’ll sooner or later decide to sell and develop another project or simply retire. You need to organise the process effectively in order to be completely happy with the outcome.
Finding a buyer for your business immediately can be somewhat difficult. The amount of time you’ll need to sell the company will depend on the attractiveness of the industry, the condition of your business and your marketing efforts.
There are certain things you can do to sell your company fast and on your own. Dedicate a few months to getting ready and you’ll certainly be impressed with the outcome of your efforts. Here are five of our professional suggestions that will make it easier for you to sell the company and to find the best possible buyer.
Pricing a Business for Sale can be Complex (but it’s Essential!)
You need to have a really good idea about what your company is worth before attempting to sell. Valuating a business is a complex process and doing it professionally will prevent you from having unrealistic expectations or overpricing.
The asking price is a critical factor for the rapid sale of a business. The value of your company includes more than the inventory and the property that you own. It should also take into account the popularity of the brand, its reputation, the customer base and the profit volume.
You need a professional valuation, in order to start the business sale process in the best possible way. Otherwise, you risk committing a serious mistake right from the start. This mistake could stand in the way of finding a reputable and knowledgeable buyer almost immediately.
Get Your Documentation in Perfect Order
Experienced buyers will be looking for perfect documentation. Talk to your accountant and bookkeeper and try to get everything in order before announcing the company sale.
Sloppy documentation is a sign of negligence. It’s an immediate red flag and many investors will move on and look for other opportunities, if you don’t present the corporate documents in perfect order.
Most buyers will look at financials, usually the documents for the past three years. These records should provide information about profits, losses, taxation, inventory, human resources, leases and agreements with sub-contractors or vendors. Prepare a file and make it available upon request. Ideal financial and corporate records will demonstrate just how serious you are about selling the business.
Who’s Your Target Buyer?
Having some idea about the characteristics of the ideal buyer will enable you to do better targeting. The effectiveness of your marketing campaign will depend on knowing who’s the individual (or entity) that will potentially be interested in acquiring your business.
Are there some likely candidates that you can talk to before going public with the sale? A business partner or one of your managers could potentially be interested in the business. Talking to these potential buyers may simplify the entire process.
Alternatively, you may want to list the characteristics of the ideal buyer. Coming up with this kind of profile will enable you to put yourself in the buyer’s shoes. If you know what a buyer is looking for, you’ll find it much easier to deliver the exact offer.
Use Innovative Marketing Channels
Marketing matters – it has to be targeted and it has to rely on the right channels.
The manner in which companies for sale are being advertised has changed significantly over the past few years. Many investors today are interested in innovative solutions.choosing a digital channel will be an excellent opportunity for reaching those investors.
You’ll also have to think about the presentation format. A video presentation is dynamic, engaging and informative. If you’re looking for such an opportunity to advertise your company for sale, you may want to contact the My Real Estate Voice team.
Privacy or Maximum Exposure?
In the past, many company owners used to make the business sale a 100 percent confidential affair. Things have changed today. Unless you have an important reason to keep the process confidential, you should opt for maximum exposure.
Online channels are cost-efficient and great for reaching a national audience. You don’t need a broker to reach an investor that lives and works halfway across the country. Just look for online platforms that are popular and reputable enough. Such platforms reach a targeted audience of people that are interested in buying a business. They will increase your chances of finalising the sale quickly and they’ll make it possible to strike a perfect deal.
Your efforts will determine your ability to sell a business fast. Spend some time on the preliminary phases of the process. Get your documents in order and gain clarity about the company’s most valuable assets. This information will help you focus on the right things and it will enable you to pick the channel that will maximise exposure.