Preparing to Sell Call Toll Free (866) 746-0698
Proper valuation is essential when selling a business.
Buyers want proof of past sales and profits. Get caught up on your bookkeeping now - and keep caught up. Financial statements will be utilized throughout the process of selling a business- from the initial value determination through the buyer's Due Diligence process. These financial statements will also be utilized by lenders to qualify the business for financing. For optimal sales, start early by gathering:
- Last 12 months of business Bank Statements
- Last 3 years of Income (P&L) Statements
- Current Balance Sheet
- Last 3 years of Tax Returns
- Copy of all leases, contracts and amendments
- Current listing of all Furniture, Fixtures & Equipment
Competitively priced businesses sell faster. At the same time, you don't want to under-price your most important asset! Refer to our Valuation page for more information on our complimentary valuation assessment and third-party business appraisal services.
When selling a business, you may wish to consider seller financing. Seller-financed sales frequently resulting in a higher total sales price and the interest income is usually set at a greater rate than can be earned at the bank. You may save money on your tax return as well, as seller-financing frequently qualifies for tax deferral. (Please consult your Tax Advisor to see if this will apply in your specific sales situation).
Transferable Leases and Contracts
Know the terms of your building and equipment leases and contracts to ensure that they are transferable, or that new leases will be granted and at what rate. This may require a discussion with your landlord.
Covenant Not To Compete
Your AIM Team business broker professional can help you to prepare your non-competition terms within an appropriate distance and for a reasonable period of time.
Reason For Selling a Business
Buyers will ask why the business is for sale, and are afraid of circumstances within the business that may have a negative impact on them. Be prepared to answer these questions.
Neatness Counts!
For a successful business for sale showing, have your premises neat and clean. Replace unsightly or damaged furniture and equipment. To reduce confusion, remove any items that will not be transferred with the business sale.
Be Prepared to Act Quickly
Throughout the process of selling, buyers or lenders will request additional information such as an updated financial statement or equipment list. It is essential that you provide these information quickly, Time kills deals.
Reduce Surprises - Disclose
Adverse situations can result from landlord problems; outstanding loans; tax arrears; unfavorable leases; non-compliance with zoning, health or other regulations; or changes in a major customer or supplier. Many of these can be overcome if disclosed to your broker early. If in doubt...Disclose.
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