Considering selling your business?
Here are 7 Rules West Island Investiprise business broker recommends before starting the process:
1. Identifying assets In preparing to sell your business itís important to identify the assets you intend to include in a sale and the assets you intend to exclude from a sale.
2. Have a realistic value of your commercial real estate To prepare for a sale, itís important to have a realistic estimate of the value of the commercial real estate and to obtain a professional appraisal from a qualified commercial real estate appraiser.
3. Physically verify your asset list If your list includes assets that are not present, it could lead to post-closing disputes. A side benefit of the asset review is you might identify obsolete assets that can be sold or identify assets that require repairs or maintenance to bring them back to operating condition.
4. Identify leased assets When identifying assets, itís especially important to note those assets that are leased, for which there may be an ongoing liability to be transferred to a buyer.
5. Consider selling obsolete assets before selling your business The value of your business will be primarily driven by the profitability of the business, not by the assets you transfer. Many small businesses have old or obsolete assets that may no longer be used. If you have assets that do not contribute to cash flow, consider selling them before putting the business on the market. It will not affect the value you receive for the business.
6. Conduct a physical review of your inventory You should also conduct a physical review of your inventory when preparing to sell the business. Old and obsolete inventory only raises issues in buyersí minds.
7. Identify intellectual property Your asset list should also include intellectual property and intangible assets such as patents, trademarks, copyrights, proprietary products/brands and exclusivity agreements.
Overcome the Power of Inertia and contact an Investiprise business broker for a free consultation. We can provide a broker opinion of value and help you identify obstacles to a successful sale as well as opportunities for improvement to increase the value of your business. That is a great way to start planning for a successful and profitable exit from your business.