Thursday, May 4, 2017

Do you want to sell your business in 3-5 years? Now is the time to plan.

We have seen a steady increase in clients that want to buy or sell a business. There are a few things business owners can do to prepare a business. In many cases, it is a good idea to start 3-5 years in advance. 

In working with your business advisor, we can discuss things to consider and provide guidance on what information you will need to start getting together to sell your business. 

Information such as:
  • Estimated value of a business.
  • Overall financial health and analysis.
  • Assets included in a sale.
  • Options for financing.
  • How to find a buyer.

We have seen some cases where a business owner tries to keep the tax burden so low that the business shows a loss each year. This is good for taxes, but when it is time to sell, a buyer doesn't want to buy a business that isn't profitable and a bank does not want to lend money for a losing venture.

There are some steps you can take to not only increase the sale value, but to identify potential buyers that can draw more from a sale. 

If you are buying a business, we can help identify things to look for in the business offering, prepare a financial analysis and talk about bank requirements.

We also have some handy articles and checklists for both buyers and sellers.  As always, please contact your advisor and set up an appointment for free, confidential business advising.