Selling a business in times of economic turbulence is a difficult and thankless task, as fewer and fewer people see the crisis as a time of opportunity. The number of offers to sell a business in a crisis is increasing, but the number of solvent buyers and investors is becoming smaller.
But despite all the difficulties, you can sell a business at any time; it is just now especially important to prepare the business for sale as much as possible. How to sell your business quickly we will tell in this article.
How to sell out your business: the main tips
When to sell your business?
Is it time to sell the business now? This is the first question that the owner must answer when he has the idea of selling. What affects the business price today, and how can it change tomorrow?
The only trouble is that many owners think of selling a business only when the profit margins drop to a barely noticeable value or (even worse!) it becomes unprofitable. But what can you count on?
It is hardly worth seriously hoping for super profits when the company is going out of business and sales itself become quite problematic. Of course, you can try to correct the situation, but in such a situation, it takes too much time, money, and effort.
In other words, if you have decided for some reason to sell your business, advises you to sell it before the business begins to experience any restrictions – in the management of the company, finance, marketing, external environment, and organization of production.
How to prepare to sell your business?
When planning to sell a company, you need to take care of the following in advance:
- to ensure a good reputation for the company in the media and on the Internet – it is recommended to disseminate more positive information about the company’s activities and its achievements in newspapers, magazines, on specialized sites, etc.;
- streamline reporting – the accounting data for recent periods should be confirmed by independent auditors;
- if there are unregistered tangible and intangible assets, it is recommended to complete all the procedures – this will increase the value of the business, and unregistered objects, on the contrary, will lead to a decrease in price;
- obtain certificates from banks on the absence of debt on loans;
- it is also recommended to improve financial reporting – to show more profit, even despite the increase in tax expenditures;
- to adequately assess tangible (movable and immovable property) and intangible assets (licenses, software, permits, etc.) – it is recommended to make independent expert assessments;
- check the execution of contracts with counterparties – the availability of profitable long-term agreements significantly increases the value of the business.
When making pre-sale preparation, the main thing is not to overdo it. Presenting to a potential buyer a rather optimistic business plan can not attract, but on the contrary, reduce the price of the transaction. After all, very good forecasts when the market is in crisis may indicate a great desire to sell the business before the situation worsens even more.
How to sell your internet business?
Consider what indicators are used to form a business valuation. By improving them, you will increase the cost of the project:
- Traffic optimization. All sources, volume, and actions on the site are important, that is, how conversion is the attracted audience. This data can be found using web analytics, for example, Google Analytics.
- Systematization of the customer base. An established customer base increases the value. Using CRM will make it easy to compile a structured list of customers.
- Revenue and traffic figures for the last 12 months. It is best if you can provide reporting for a longer period. The data will prove the stability of the business. All data is documented – bank statements and screenshots from web analytics. Be prepared for the fact that the buyer will ask for access to Google Analytics.
- Sell at the peak. If the business has seasonality, then put it up for sale during the growth of profits.
If it is difficult to evaluate the business yourself, contact a broker. He will conduct an analysis and name the cost of the project.
The above tips are of a general nature. When concluding a business sale and purchase transaction, the owner of the company needs to understand that the transaction is carried out on favorable terms. In this article, we have prepared some recommendations for how to sell your business. But even the simplest transaction may contain unforeseen situations that are easier to solve with the help of professionals.