Only 39% of business owners are happy with their venture, which explains why there are so many sellers. Visit Nash Advisory if you’d like to know more about selling or buying a business.
Understanding the nitty-gritty is essential for covering your tracks and preventing issues further down the line. But, if you’ve never been in this position before, you may make a mistake and potentially put the sale at risk. Maybe that’s why you’re here; you want to sell your business and want to learn the most important aspects.
Hit the nail on the head? Luckily, you’ve come to the right place. Read on for the top things to do when selling a business.
Consider Your Reasons for Selling
Before hiring liquidation services, you should consider why you’re selling. Common reasons include retirement, partnership issues, or wanting a career change. Know, if your business’ finances are in order, then it will look more attractive to buyers.
Always Be Prepared
Not sure how to sell a business? The key is to be prepared.
A good rule of thumb is preparing ideally one year ahead of time. This will help you improve your financial records and business structure to increase your chances of selling.
Get Your Business Valued
When selling a company, getting a business valuation is a must. If you don’t, you may price your business too high or low, so you won’t get a good deal. To prevent this, reach out to an appraiser and they will give you a realistic valuation. A company’s data assets also need to be weighed and valued, and for that, hire a company specializing in data valuation.
Find a Reliable Buyer
If someone has noticed your business for sale, they likely won’t give you the right price. Because of this, it’s wise to hire a business broker to handle the sale. These professionals can prepare an attractive marketing package so that buyers have an in-depth understanding of your business and its financial projections.
Gather Important Documents
A major part of running a company is keeping your documents in place. At the very least, you’ll need financial information, any permits or licensing agreements, and governance documents. Note, if you don’t have these, it could put off buyers.
Sign a Sales Agreement
When both parties are happy, it’s time to sign a sales agreement. This puts the deal in writing and makes it legally binding, so hire a lawyer for peace of mind. The contract should include a value of the business’ assets and protections to ensure you receive the money.
To accelerate the closing process, make a checklist of the necessary papers both of you need.
File Paperwork With the IRS
Work with business management to file paperwork with the IRS. The buyer and seller must complete Form 8594 and file it with their tax returns. If not, you will be breaking the law.
Tips for Selling a Business
Hopefully, you’ll follow these tips when it comes to Tampa businesses for sale.
There are many important aspects to consider, such as being organized and working with a business broker to find a buyer. Sellers should also gather important documents and file paperwork with the IRS. Good luck!
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