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Trent Lee FCBB Agent

You have decided to sell your business, but you are unsure of what price to list it at. You don’t know what criteria and documents are needed to price your business at the right price to attract a lot of buyers but still get the most money and profit for all your hard work and investment. The below steps list the criteria and documents you will need to successfully sell your business. 

 

1. Enlist the help of a Professional Business Broker.  The very best thing you can do for yourself and your business is to hire a Professional Business Broker. They will valuate your business, create marketing material, and list your business on several websites to attract the most buyers. They have years of experience in dealing with a variety of businesses, they know the local market, and they have the resources to make sure your business sells for top dollar. Once they find a buyer their expertise will lead you with confidence through negotiations, the due diligence process, escrow and ensure the deal is structured properly and processed to protect you, your family and other assets. 

 

2. Profit and Loss Statements, Tax Returns, and Other Financial Documents.  You will need to have the last three years of your business’s profit and loss statements, tax returns, cash flow statements, and balance sheets. Get with your accountant to gather this information and a Statement of Seller’s Discretionary Earnings (SDE). Buyers are going to want to see the business's gross revenue, net revenue, and how the business has been performing. It is also good to have the lease or rental agreement, receipts for equipment, titles or loan documents for vehicles, and a list of any liabilities that are owed.  

 

3. Create a List of Tangible Assets.  You will need to survey your business and make a list of all its tangible assets. This will include any furniture or furnishings, equipment, vehicles, machinery, and all the inventory. List the age, condition, and original price. This will all be valuated and included in the sales price of your business.  

 

4. Research the Market to Find Comparable Businesses. 

Using the internet and business selling websites look for comparable businesses and see what they are listed for. You will want to research businesses that are in the same category, square footage, product, number of employees, etc. This will help you know that your business is being listed at the right price. 

 

As you can see there is a lot of factors that go into pricing a business correctly. Using a professional business broker will help you navigate through all these steps and ensure your business is priced to sell and you will get the most profit. Let them do the heavy lifting by valuating your business, it’s location, financial statements, tangible assets, trends in the market, etc. But as always, the more you know the better you will feel during the selling process. Having the above information will give you the confidence that all the steps are being considered and completed and your business is listed at the optimum sales price.