American Business Advisors – Acquisitions, Divestitures & Evaluations
Twenty Tips in Selling Your Business
- Ideally you made plans to sell the business when you started or bought it, and have acted accordingly.
- If you are “burned out” in your business, and may be hurting it, sell it before you do serious damage.
- Ideally, you have kept accurate, well organized, and easily understood records of the business. If not, start now.
- Improve the “curbside appeal” of your business with paint, landscaping, etc.
- Clean up, spruce up, straighten up the working areas of the business, especially the area occupied by the owner.
- To establish a price, call in three Business Brokers to give three separate free appraisals of your business.
- No matter what price you ask, the offers will come in for less, so price your business accordingly.
- Without relinquishing control, structure your business so that you are no longer crucial to its success.
- Do not sell to someone you know will not be successful, you are likely to get sued.
10. Do not list your business with a broker for more than three months. If he performs well, you can always extend the listing.
11. Always use an escrow company.
12. Do not train the new owner before the close of escrow.
13. Code client information (IMPORTANT).
14. Code supplier information (IMPORTANT).
15. Get a down payment that will cover your assets.
16. Have an outside Accountant for your business.
17. Hide your “Citizen of the Year,” etc. awards.
18. Have a clean desk.
19. Take vacations.
20. Admit mistakes.
Bill Reinis is a Business Broker with American Business Advisors and has been in the business of buying and selling businesses for over 25 years. If you are looking to buy or sell your business, contact Bill at 714-771-3600. Bill is the Business Broker who brings you BUCKS!