Selling a business is not easy as it may be a prospect never even considered. Things happen in life and sometimes selling may be the only alternative which is why it is best to be prepared. A decision might have to be made as part of a longer-term plan such as retirement.
However, whether you plan to sell your business or not, it is imperative that your books meet legal requirements as this will provide a prospective buyer with up-to-date information.
“It is important to get the business valued which will help reach a reasonable selling price. The actual valuation will calculate the total value of inventory and assets against any pending liabilities.
The valuation should also calculate the goodwill value just in case a prospective buyer wishes to continue under the same business name and location. The profit earned from the business and projected profits will also be needed when negotiations commence. However, it is vital that in the interim the business is run as normal,” said Gerald Irwin of Sutton Coldfield based Licensed Insolvency Practitioners and Business Advisers, Irwin Insolvency.
Mr. Irwin added the importance of explaining the reason for the sale as prospective purchasers will need to know the reasons especially if the business is doing well. Equally important is for business owners to check out the history of prospective purchasers especially if the new owners plan to continue running the same business using both goodwill and reputation that has been built up over a number of years.