Are you looking to prepare your business for acquisition or sale?
This can be a complex, time-consuming, and perhaps a daunting process. As a creative business owner, you want the best possible outcome for both yourself and your business.
Let’s take a look at some of the steps you can take to prepare your business for acquisition or sale…
Review your financials
Understanding your company’s revenue, expenses, assets, and liabilities will give you a better idea of what you can realistically expect from a sale.
Organise your records
All of your important business records, such as contracts, tax returns, financial statements, and the like, should be easily accessible to help potential buyers review the business.
Clean up your financials
Your business financials should be in order before you sell. This involves paying off outstanding debts, resolving legal disputes, and getting your books in order.
Build strong management
It can be difficult to sell your business if it relies heavily on your involvement. But having a strong management team in place means the business can be run effectively without you.
Identify potential buyers
It helps to identify people who may be interested in buying your company. You should consider networking, reaching out to industry contacts, and working with a business broker.
Value your business
Having your business valued by a professional is essential for giving you a realistic idea of what your company is worth and what offers you can expect to receive.
Prepare a business plan
Your business plan should outline the strengths and weaknesses of your company, plus any opportunities for growth. This will give buyers an idea of the business’ potential.
Consider tax implications
A tax professional will be able to help you understand the implications of selling your business. This advice will allow you to maximise your tax liability and ensure everything is compliant.
Negotiate the deal
Just like with any large investments or purchases, there will be negotiation when you receive offers. It helps to work with a business broker or lawyer to ensure you get a fair deal.
It can take a while to get your business fully prepared for acquisition or sale, but following these steps will help you achieve a great deal and increase the likelihood of finding a buyer.