After years of dedication and hard work, you’re thinking about selling your business. Preparing to sell is just as important and the sale itself. Before selling your Charlotte, NC business, VR Business Brokers recommends you consider the following questions to ensure a successful transaction.
7 QUESTIONS TO ASK BEFORE SELLING YOUR CHARLOTTE, NC BUSINESS
Be able to answer these seven questions before putting your business on the market.
1. DO YOU HAVE AN EXIT STRATEGY?
Preparation is key when it comes to selling a Charlotte-based business, so ensure you have an exit strategy in place prior to listing your business for sale. A thorough exit strategy should answer questions like:
- Who will my successor be?
- How much longer do I want to be involved in my business?
- What are my financial goals and does my retirement depend on the sale of this business?
- What are the tax implications of the sale of my business?
- What is the value of my Charlotte-based business?
If you need assistance developing or updating an exit strategy, enlist the help of a business broker. With an exit strategy in place, you will alleviate stress when it comes time to sell your business.
2. WHAT ARE YOUR BUSINESS’ WEAKNESSES?
Potential buyers will look at every aspect of your business. Before you list your business for sale, pinpoint the areas that need some improvement. Focus on bettering your business model, marketing, licensing and contracts. Create a plan to improve these areas with strict deadlines to ensure your business is in the best shape before you list it for sale.
3. DO YOU HAVE YOUR PAPERWORK ORGANIZED?
When a buyer enters the due diligence stage of the sale, you need to have all of your ducks in a row. Work with your lawyer and accountant to prepare tax documents, contracts, leases, and financial statements so when buyers ask, you’re able to answer.
4. HOW LONG WILL THE SALE TAKE?
One of the first things business owners want to know when selling their business is how long the sale is going to take. Retirement may be waiting for them, or they have debts to pay off, so understanding the transaction timeline is extremely helpful. While the answer depends on multiple factors such as industry and business size, the average length of sale is between six and 12 months.
5. WILL YOU FINANCE THE SALE?
Financing the sale attracts more potential buyers, which typically means a shorter time your business is on the market. There are many different ways to offer seller financing, so do your research to find the best option for you.
6. WHAT IS YOUR BUSINESS WORTH?
Without a professional business valuation, it can be difficult to determine your business’ worth. There are different ways to obtain a valuation, such as a formal valuation or a broker’s opinion of value. Ultimately, to determine the value of your business, there are key factors you need to take into consideration. The four key value factors that VR Business Brokers of Charlotte considers are seller’s discretionary earnings, risk, terms of the sale and industry. Once you know the value of your business, you can easily determine a fair listing price.
7. SHOULD YOU HIRE A BROKER?
Selling a business can be a daunting task. Hiring a business broker can be extremely helpful especially if you don’t have time to market to potential buyers while running day-to-day operations of your business, or if you don’t know where to find potential buyers. Plus, a business broker can ease the stress and maximize the value of your business.
To learn more about selling your Charlotte, NC business, contact VR Business Brokers of Charlotte. Our team is prepared to help you through every step of the selling process to maximize your profit and connect you with potential buyers.