By: Ken Lewellyn, CBI

It will likely be the biggest financial deal you’ll ever make, so it’s vitally important to be
sure you are properly prepared when selling your business. Taking the proper steps to get
your business ready for sale can significantly improve the likelihood of a successful sale.

For many business owners, the prospect of selling the business after years of pouring
every effort into growing the company can be emotional and difficult. That’s a major
reason why it pays to structure a plan to prepare for the sale. Remember, it’s crucial to
use the same care and patience that is used to grow and sustain a business.
What important steps are needed to prepare your company for sale?

• Determine the company’s actual worth. There are a lot of formulas for valuing
a business. Buyers may base a purchase offer at least in part on the value of the
assets in a business, the cash flow, gross revenues, annual growth and other
factors. The sale price generally depends on profits and, in most cases, the sale
price is some multiple of the businesses profit. Valuations can be obtained from a
number of sources including a certified business intermediary.

• Be sure your records are up to date. You want all of your hard work to pay off
in the sale, so be sure you have current, detailed records that provide an audited
assessment of the company’s financial position and future projections.

• Remember your staff is an important asset. The loss of key employees during
a sale can kill the deal. Key employees may be crucial to the ongoing success of
the company. Assess which employees are prepared to stay with the company
through the transition.

• Assemble a team of experts. No matter how independent you are, the sale of a
business isn’t something to handle on your own. A business intermediary will
take some of the load off your shoulders so you can spend time running the
business when it’s needed most. Keep in mind that the sales performance of the
company during the time it’s on the market is crucial, so working with a qualified
business intermediary to sell your business will allow you to focus on the ongoing
operation of the company. Business intermediaries know the ins and outs
of Mergers & Acquisitions and take pride in what they do.”

Always remember that selling a business is a one time event. Preparation is a key to a
successful sale. Be sure you understand the process involved.

Tennessee Business Services serves small business owners by offering services such as bookkeeping, taxes, IRS representation, business valuations, business turnaround consulting, sale of businesses and franchise advising.  Lewellyn is one of six business brokers in Tennessee to hold the Certified Business Intermediary designation, awarded  by the International Business Brokers Association.  Tennessee Business Services is located in Hendersonville, TN and can be reached at www.tnbizserv.com,  info@tnbizserv.com, or (615) 400-2150. 

The International Business Brokers Association is the largest international, non-profit association operating exclusively for the benefit of people and firms engaged in the various aspects of a business brokerage and mergers and acquisitions. IBBA has 1,950 members worldwide, with corporate headquarters in Chicago, Illinois.