Are you thinking of selling your business but afraid to do it the wrong way? In effect, several steps must be followed to do things correctly. With T2 Inc, you will discover various tips to simplify the sales process.
Selling your business: establish a succession plan
In order to facilitate the sale of your business, the first step is establishing a succession plan. This will allow you to better manage how you will transfer ownership of your business to the future buyer. This plan can be established even if you do not sell your business immediately. This will still allow you to prepare for the future.
This plan will be constituted according to the following structure:
- Goals and Objectives
- Estate planning
- Emergency planning
- Company structure and transfer methods
- Company evaluation
- Exit strategy
- Implementation and monitoring
It will help you make important decisions regarding the transfer of your business.
Determine your business value
Before you sell your business, it is important to determine its value. This includes several factors:
- A similar business selling price in your area
- The total value of your current stocks
- The value of your physical assets and equipment
It is recommended that you hire a professional business appraiser, as the valuator knows how to use various methods to accurately estimate the market value of your business.
The buyer will also be able to assess the value of your business via your expected cash flow over the next few years. Remember to update your accounting records on a regular basis.
Find a buyer
Finding a buyer can be a complex task. Start by sharing your decision to sell to your professional network. You can also turn to a broker that specializes in business cessation. You can also contact the various people responsible for business mergers in your industry.
Dissolving your business account
Selling a company may involve updating or closing your accounts before you leave the company. Each account has its own process and its own forms to complete to properly update or close them. An accountant’s help could be very useful because each account closure is different.
Finalizing the sale of your business
Once the buyer has been found, and in order to finalize the sale of your business, you need to establish a legal document such as a contract. It is recommended to hire a lawyer to draft this document and avoid potential legal issues.
Different procedures for company cessation
Several procedures must be followed to sell your business properly. Start by determining a succession plan, evaluating the value of your business, finding a buyer, dissolving your accounts and of course establishing a sales contract with the future buyer. To avoid any mistakes, do not hesitate to call on professionals in the accounting and legal field.