How to sell a working business
When deciding to sell a working business, one should prepare very carefully for the upcoming deal. The best way to take into account all the “buts” is to call the auditor.
Only a true expert is able to perform a qualitative analysis and simplify the upcoming sales process as much as possible.
Preparation for sale
Before the transaction, both parties with special attention study the documentation accompanying this process. For this reason, a package of necessary documents should be prepared in advance. If there are several applicants for acquiring a business, it will be quite appropriate to inquire about the solvency of each of the candidates.
To avoid unnecessary hiccups, you should carefully check existing contracts that are of fundamental importance for the possibility of selling. Particular attention is recommended to be paid to all rental agreements. If necessary, you will have to extend them.
If the company has premises that are in its ownership, then you should contact the BTI for certificates confirming the ownership. Be sure to get on hand certificates from partner banks about the absence of debts. Accounting should prepare copies of balance sheets.
To assess the property of the enterprise and its assets will require a quality marketing review. It should include information on the market share of products or services provided by the company.
Policy and Analysis
It will be just fine if you can prepare a detailed description of the company’s products before the sale. Also, do not forget to attach a list of consumers and competitors to the package of documents. An important factor determining the market value of a company is an effective business plan.
It should contain the strengths of the business, methods for eliminating bottlenecks and, necessarily, an objective analysis of its resources. We should not forget about the detailed analysis of the financial and economic part. Please note that several variations of the transaction may be offered. The most common of them are:
lease with option to purchase;
purchase / sale.
After providing the documentation to the potential buyer, as a rule, he hands them over to lawyers for detailed consideration. It is recommended that an explanatory note be attached to them, in which all the key points of the transaction will be reasoned.
However, when it comes to selling an expensive business, it will still be more appropriate to contact an intermediary company that has a solid reputation in the market in this service sector.