Checklist for Selling a Business

When you’ve decided it’s time to sell your business there are a few specific steps that need to be taken by every seller. These steps make up the perfect checklist for selling a business and if you miss one it might lead to you making big mistakes within the selling process. This article will discuss the different steps you need to take to sell your business. A checklist can be a lifesaver when selling a business, so let's take a look at what one should include.

Business for Sale

14 June 2022

Summary

When you’ve decided it’s time to sell your business there are a few specific steps that need to be taken by every seller. These steps make up the perfect checklist for selling a business and if you miss one it might lead to you making big mistakes within the selling process.

This article will discuss the different steps you need to take to sell your business. A checklist can be a lifesaver when selling a business, so let's take a look at what one should include.

1.   Identify the Why

The first question any interested buyer is going to ask you is: “why are you selling?” You must respond to such questions with a bold and confident answer. These questions indicate that selling a business is not always simple, because the true answer might not always be what a potential buyer wants to hear.

When selling a business, you naturally want to get the best price possible. After all, you've put a lot of time and effort into the business. Once you have solid answers to all of the "why" questions, your business sale process will be much easier when communicating with potential buyers and you'll be able to support your reason for selling.

2.   Determine a Justifiable Value for Your Business

It is difficult to determine the worth of a company, especially if you built it from the ground up. Most business owners regard their businesses as their life's work and attempt to sell them at that price; however, that might not be the most accurate method.

A business valuation refers to various methods for determining a company's worth. Different valuation methods produce different values. It is critical to understand that there is no such thing as a single correct and actual value; selling price is determined by comparing values. For example, the industry in which the business operates also plays a role in determining its worth.

3.    Ensure You Have All Relevant Documents

When selling a business the next important step is to make sure you have all the business and tax documents needed. Marketing plans, supplier and customer contractual arrangements, product pricing lists, and a written business plan are examples of business documents.

All of your government tax documents for the last three years, as well as profit and loss statements, are included in your tax documents. These are the most crucial documents required when selling a business.

Other documents you might require include:

• Insurance coverage and policy documents.
• Legal documents such as the company's stocks and shares, employment contracts, and pending lawsuits.
• Intellectual property documents
• Financial Statements and Management Accounts

Are You Preparing to Sell a Business?

If your answer is yes and the above information seems a bit overwhelming or daunting, don’t stress because Business for Sale is here to help! We offer an innovative and intuitive solution for selling your business, which includes professional business valuations, obtaining the right draft contracts, helping you seal the deal, and much more. Visit the Business for Sale website and list your company today!