The sale of a business to a prospective buyer often starts off promising. When the process of selling the business moves into the due diligence phase, challenges can, and often do, present themselves. Due diligence is done to protect both buyers and sellers. It is during this time that deals are most likely to fall apart. It is important for the business to show itself well and for sellers to be well-prepared and ready with documentation, records, and for any questions and concerns that buyers might throw their way.
What are some of the things that buyers will be looking at? You may want to think about what you would be looking for if you were considering buying your business. For example, if your business has equipment, how old is the equipment and is the equipment in good shape and operating well? Do you have service contracts? Are there any potential environmental issues?
Buyers will also look at your staff and both tangible and intangible assets. Have your employees been with you for many years? How might you help them with a transition to new ownership to ensure that they stay? Is all equipment included in the sale? Will trademarks, patents, and/or copyrights also be included in the sale?
As a seller, you need to do all that you can do in advance. Financial records should be accurate and complete. The premises should be clean, organized and visually appealing. The equipment should be in good working order. Your staff should be competent and cohesive.
Remember, your goal is to maximize the sale of your business and have a smooth transition.
We are always looking to help people with the sale of their business. We offer services in a professional manner with a consultative, individualized approach. For more information or to receive a complimentary consultation, click here.
