You have been growing your company for a long time and have decided to prepare for the sale of your business for top dollar. The following are the basic steps for selling your business.
- Determine how much your business is worth. You can sell your business for what the market will pay. A business is generally worth a multiple of the earnings. This means a value applied to the profit of your business. Depending on the size of the deal, it can be 2-10 times the profit.
- Prepare your financial statements with your accountant.
- Find a broker or investment banker.
- Develop documents that outline the summary of your business.
- Market your business to potential buyers.
- Let the buyer perform due diligence. This process generally takes 60-120 days for the buyer to verify the financial statements.
- Close the deal. Sign the final contracts and let the handover process begin.
Kathy Delaney, CPA