Have you ever gone through the process of selling your own car? If you have, then you know you must get your ducks in a row before you sell. There are many questions you will consider before advertising the sale of the vehicle. For instance: Does it run properly? Is it the clean, well-oiled machine that you are ready to advertise to potential buyers? Will someone help me sell my car? How do I value it? Do I have all the proper documents to provide to the new owner? This list of questions can keep going, and though it might not take a person too long to answer these when selling a car, a great many of these questions need to be considered when you decide to sell your own business.
Like with selling a car, many costly mistakes can be made when deciding how you will go about selling your business. But here at NorthStar Strategic Partners, we have a great deal of experience assisting business owners in readying themselves and their businesses to sell. Because of this, we would like to offer a few helpful tips to our NorthStar family and friends.
1) Mistakenly believing your business will sell overnight. One key thing to remember when starting the process of selling the business you have worked so hard to create is that it will take time. It can take anywhere from 1 to 3+ years to prepare your business to sell for the maximum profit you deserve.
2) Trying to go it alone. Selling your business on your own and without the help of a business advisor or M&A specialist is not recommended. You will need help understanding the process like what information will be needed to determine the list price, the purchase/sale contract, agency representation and more. Enlisting the help of a proven expert will save you headaches and money.
3) Not getting a proper valuation of what the business is worth. In your head, you may have an idea of what you would like to be paid for your business, but the reality is that you may be over or even underpricing the business. Having someone accurately define the monetary worth of your business is essential for you as a seller.
4) Not doing proper tax planning BEFORE you sell. There are different tax strategies that you can explore to help you minimize taxes once the sale is complete.
5) Not having a plan or strategy before listing the business for sale. It takes an average of 8 – 12 months to sell once the business has been listed on the various internet sites. Having a plan to strategize the listing can increase your chances of a shorter timeline of the sale.
Keeping these tips and strategies in mind is just the starting point for the sale of your business, but in the end, they can successfully help get your hard-earned business sold.