A lot of people who start a business have it in the back (or front) of their minds that they’ll want to sell it one day. Despite that, when it comes time to actually do so, it can be quite a complicated and fairly confusing process, to say the least. If you’re a startup founder who is looking to prepare for a company sale, then you can navigate that process more easily by following these simple steps. From considering your motivations to sorting out any potential complications, here’s what you need to know.
Get Clear on Your Motivations
For some people, this might seem like a weird question. After all, surely the motivation behind selling most things is to make money? In most cases, especially when selling a complex asset like a company, things tend to become a bit more complicated.
You’ll also need to decide whether you want to rush the sale through to free up cash for other ventures, if you wish to find a specific kind of buyer who you can trust will look after your clients, and all sorts of other specific motivations that can change the way you approach the sale. You’ll want to consider these questions early on, before taking any of the following steps.
Optimise Where Possible
During these early stages, it’s essential to consider what you can do to increase the value of your business. Whether that’s pushing through a significant partnership that’s been on the books for a while or preparing a report on market predictions, these efforts can help you to get more for your business by making it more appealing to potential buyers.
Even if the plan will take a long time to enact and result in tangible benefits, you can still put together a document detailing the plan to illustrate these areas of growth to interested parties.
Find a Business Broker
You mustn’t try to sell your business on your own. Even if you think you’ve stumbled across the perfect buyer, it’s still worth talking to a business broker like Dexterity Partners to see if their offer is genuinely competitive.
Business brokers can also help you effectively package and market your business, exposing it to the right demographics. It can substantially speed up the sales process, while also helping you get closer to meeting your sales goals.
Prepare Important Documents
Multiple aspects of the sale will require you to have your accounts and other important documents in order. Whether that’s during the initial valuation or for later stages, such as due diligence, failure to prepare these documents properly can easily undermine otherwise promising sale opportunities.
A company sale will never be easy, but by following the general steps outlined above, you can help set yourself up for success. Ensure you seek assistance from the appropriate parties when necessary and minimise the likelihood of making any critical mistakes.
