You might be considering a sale of your business. In that case the following steps can be taken up to ensure that the sale is conducted smoothly and in a professional manner.
1. Get Your Business Valued
It is well known in the market that getting a good value for selling your business might not be easy. You need to obtain information regarding the right price of your business in the market to get ahead of the buyers you deal with. The assets and inventory need to be valued of a business. The total value will consist of fixed asset values like that of equipments and plants as well as subtracting away the receivable, stock and cash which comprise the current assets. You can also compare the buying price of other similar businesses to know how much you can settle for.
2. Stating A Price
Once the valuation is done, the right price is decided on which you can be willing to get your business sold. If the price quoted is too high, potential buyers will be discouraged. One needs to be realistic about the price quoted. You need to know your benefits so that you do not settle for too low a price. The goodwill value of your business needs to be considered as well which needs to be added to the final business price.
3. Smooth Closing Of Business
It is necessary to plan for the smooth closure of a business which will also help to maximize profits. The right structures and processes need to be looked at. The preparations need to be emotional as well as physical which includes how the business will be transferred onto a new owner. As one spends a lot of energy, resources and time on their business, one needs to be emotionally prepared at the time one is exiting the business. The change needs to be dealt with in the right way. There should not be any rush last minute or financial worries to address at the last moment. All required documents need to be in place as well.
4. Finding The Right Buyer
Once you have evaluated the business, prepared to close it smoothly and decided on the right price range, you need to get the right potential buyers by passing out information about the deal you are offering. In case a business is famous, news about the sale becomes well known in a short time frame. One should consider putting up advertisements in newspapers, magazines and business portals to get the news out there. It is best to seek out the right forum to get likeminded buyers for your business.
5. Forming A Sales Agreement
When one is making a business sale, the transaction needs to be in writing. All details need to be mentioned on paper stating the value of the assets being purchased, the protections and payments to be made so that the buyer is obliged to fulfill his or her obligations. It is important to get a lawyer involved. All legal coverage needs to be ensured.
For more advice on a smooth business transaction or how to sell a business in Canada you will find relevant information on our Canadian website.