Did you know that it may take up to 3 years to prepare your business for sale?
There area my riad of procedures to consider and perform in order to present a successful business for sale to the public.
Just to name a few items: a potential buyer will dive deep into your business activity to see if it is truly successful and worth buying. It is called the “Due Diligence”process.
What this means is a detailed review of financial statements for a minimum of 3 years. A potential buyer will look at your infrastructure in regards to your production systems or services, your profit margins and your administration procedures. You will most likely be asked if you have a “Standard Operating Manual”.
This manual is a valuable tool for you to run your business with and for anyone thinking of buying the business. It becomes increasingly important if your business operation is somewhat complex.
Potential buyers always look into the numbers. Your bookkeeping should not only be current, but in good order. You can say all you want on how great your business is, but the bookkeeping is the real story on showing how great and healthy your company really is.
If you are thinking of selling within the next 3-5 years, you want to start the process now. A potential buyer is looking for the easiest business to buyin and take over. Your procedures should be in place and working, you have removed yourself from the day-to-day activity (staff running the business), your bottom line is profitable, and most importantly your bookkeeping will pass the inevitable due diligence process.
So what if your business is not showing profitable and you want to sell now? It isn’t the end of the world. This is where a professional like an accountant, business broker or possibly your Part-Time Controller will review your financial statements and adjust them according to what is called “normalization”.
This is where they remove any debts, liabilities, etc. that will be collapsed on closing. Then they will help you prepare your proposal to entice a potential buyer. If you are unsure whether to sell your business or not, connect with us and we will look into it and guide you in the right direction.
Thanks,
Sandi Holst
Bruce Peninsula Business Alliance Inc.
Phone: 519-719-4654
There area my riad of procedures to consider and perform in order to present a successful business for sale to the public.
Just to name a few items: a potential buyer will dive deep into your business activity to see if it is truly successful and worth buying. It is called the “Due Diligence”process.
What this means is a detailed review of financial statements for a minimum of 3 years. A potential buyer will look at your infrastructure in regards to your production systems or services, your profit margins and your administration procedures. You will most likely be asked if you have a “Standard Operating Manual”.
This manual is a valuable tool for you to run your business with and for anyone thinking of buying the business. It becomes increasingly important if your business operation is somewhat complex.
Potential buyers always look into the numbers. Your bookkeeping should not only be current, but in good order. You can say all you want on how great your business is, but the bookkeeping is the real story on showing how great and healthy your company really is.
If you are thinking of selling within the next 3-5 years, you want to start the process now. A potential buyer is looking for the easiest business to buyin and take over. Your procedures should be in place and working, you have removed yourself from the day-to-day activity (staff running the business), your bottom line is profitable, and most importantly your bookkeeping will pass the inevitable due diligence process.
So what if your business is not showing profitable and you want to sell now? It isn’t the end of the world. This is where a professional like an accountant, business broker or possibly your Part-Time Controller will review your financial statements and adjust them according to what is called “normalization”.
This is where they remove any debts, liabilities, etc. that will be collapsed on closing. Then they will help you prepare your proposal to entice a potential buyer. If you are unsure whether to sell your business or not, connect with us and we will look into it and guide you in the right direction.
Thanks,
Sandi Holst
Bruce Peninsula Business Alliance Inc.
Phone: 519-719-4654