Selling a business is overwhelming. And while there’s no getting around the complex process, negotiations, and paperwork, there are steps you can take prior to listing your business that will help to smooth the process. Being prepared means less anxiety and surprises throughout the process & more satisfaction when the sale is complete.
1. Know Your Value
Value is the first step for any business evolution. An accurate and comprehensive assessment of value is key to realizing what your business is worth when it’s time to sell. Beware though, taking shortcuts to value will often result in money left on the table.
READ: Using Multiples of Revenue to Determine Value
2. Gather Your Team
As you go through your selling journey you’re going to need a team of professionals in your corner to ensure you don’t run into any regulatory issues, or leave any money on the table. You’ll need a CPA and a personal lawyer to act as your advocate. But you’ll also benefit from a nonadvocacy consultant who is committed to the success of the deal and a successful transition as a whole – an expert in the process who can alleviate the guesswork and is available to answer any questions.
READ: Managing Your Team
3. Imagine Your Ideal Buyer
Before you list your practice in search of a buyer, you should spend some time thinking about your ideal buyer. What attributes, attitudes, experience, and philosophies are important for the next owner of your business to have? Which of these criteria are essential, and which would you be willing to let go of in lieu of other favorable deal points?
READ: The Perfect Fit
4. Be Honest with Yourself