Step 1: Have a Plan for Selling Your Business
To start, you’ll need to create a plan for selling. You’ll determine how much you’d like the business to sell for and conduct a full valuation to see if your business can reasonably command that price. You’ll need to gather all your business’ data, including tax statements, business plans, strategies and training, and everything else that can be considered in the assets.
If that valuation concludes you can’t get the price you were hoping for if you sell now, your plan will include steps to increase the value of your business before you put it up for sale.
You’ll need to recast your financial statements, since your tax documents are usually prepared with an eye to showing the lowest profits possible. That’s great for taxes, but the worst possible strategy when you’re trying to convince a buyer that your business is worth buying. All your company’s finances will need to be presented in a light that makes them appealing to buyers.
Finally, you’ll prepare an Executive Summary of your business and a Confidential Business Review. Only then are you prepared to seek out potential buyers.