No company lasts forever. If you’re a business owner in Indiana, here are some tips to help you maximize your sale price when the time comes for you to move on.
Organize your documents
Make sure your financial documents are current and that all accounts reconcile. You want to maximize your profit, so explore ways to increase your value. Perhaps you can expand your customer database or streamline operations to reduce overhead.
Document any post-closing concessions you might be willing to consider. For example, you may offer to stay in an advisory capacity for a few months after the sale until the new owner is comfortable taking the lead.
Collect any leases for equipment or tenants and store them in an easily accessible format for prospective purchasers. You might consider scanning them into a computer file.
Hire a business broker
A business broker has a real estate license, knowledge of business law and specializes in selling companies. Choose someone who has experience appraising the value of your particular type of business, including copyrights, customer lists, equipment, office space and goodwill.
The broker will market the listing and contact likely buyers to notify them of the sale. They will handle the negotiations with prospective buyers and recommend reliable financial resources.
The business broker may review your attorney’s sales contract and recommend revisions. If the new buyer keeps the current staff, you must ensure the agreement states this. Once everyone signs the required documents and money transfers, you give the new owner the keys.
Selling a business can be complicated, and take months to find a suitable buyer. Fortunately, you don’t have to do it alone. Build a team of trusted advisers to help you through the process.