After careful consideration, you may decide selling your business is a good option. Sound planning can help ensure you cover all your bases.
Use business valuation to set a monetary value before marketing to prospective buyers. You can do a self-evaluation and also seek out a qualified business appraiser.
Accurately value all property and real estate tied to your small business. This can include intangible assets like brand presence, intellectual property, customer information, and projection of future revenue.
When you’re figuring out how much your business is worth, consider these common valuation methods.
Income approach. Looks at projected revenue and accounts for potential risks.
Market approach. Compares your business to other similar businesses that have recently sold.
Assets approach. Subtracts total business liabilities from the total value of all assets.
Make a sales agreement
You must prepare a sales agreement to sell your business officially. This document allows for the purchase of assets or stock of a corporation. An attorney should review it to make sure it’s accurate and comprehensive.
List all inventory in the sale along with names of the seller, buyer, and business. Fill in background details. Determine how the business will be run prior to close and the level of access the buyer will have to your information. Note all adjustments, broker fees, and any other aspects relevant to the terms of agreement.
Don’t leave out any assets and liabilities, or this can create problems even after the sale has been finalized.
If you need help selling a business talk to one of our Small Business Development counselors