5 Important Steps to Take Before Attempting to Sell Your Business

Next Steps Business Broker Sale

Selling is the most popular exit strategy for business owners. In some cases, there are no descendants who want to continue the activity; in other cases, it has always been the plan of the owner to convert the business into liquid assets, at some point.

Whatever the reason, you must first prepare your business for sale by consulting with a Colorado business broker. Here are 5 important steps:

  • Get ready for the sale

You cannot just sell a business without preparing everything in detail. Make a file containing financial statements, tax returns from recent years, copies of valuation notices and other necessary documents.

  • Clearly determine what you want to sell

You have two possibilities: either sell shares or sell assets. A buyer will want to know exactly what they are buying.

  • Prepare information about the company’s profit

A business person will definitely want to know what the company’s current profit is, in order to anticipate how the business will continue to work in the future. Therefore, this information is essential.

  • Determine the real value of the business

Find out about the market price of the business you are selling and evaluate it correctly, if you want to have buyers.

  • Prepare a business summary

Be very careful if you pass confidential information in this report! Do not hand it over to a potential customer until they sign a confidentiality report.