If you own a business and feel ready to sell your company and move on to your next big adventure, there are many factors you need to consider. Use these tips to make sure your prospective buyer has everything they need to complete a successful and profitable sale.
Prepare Your Financials Before Listing Your Business For Sale
The only way to create an accurate assessment of your business is to prepare two to three years of business records. It’s best to build these records over time, but it’s not uncommon for business owners to become so consumed with running their business that they let documentation take a back seat. If you find yourself in this position, you have no choice but to gather your papers, roll up your sleeves, and do it all now.
It may not be fun to devote days, weeks, or even months to the preparation of your financial records, but it will pay off! If you can provide prospective buyers with clear, comprehensive financial records that demonstrate the integrity of your business, you have a much better chance of receiving your asking price — or higher!
Gather and Create the Following Documents
It’s not enough to simply hand over your bank statements and expect potential buyers to see the value of your company. Work with a professional to prepare the following documents before your business hits the market:
- 3 years of tax returns
- 3 years of financial statements
- Most current partial year financial statement
- Corporate resolution, if incorporated
- Description of business
- Aging analysis of accounts receivable/inventory
- Sales analysis by major customers/channels
- List of assets and fair market values
- Copy of lease and summary of lease terms
- Real estate appraisal, if applicable
Be Honest
It’s tempting to blur the lines to make your business look more profitable than it really is. Avoiding the truth will only hurt you in the end because it will prevent your business broker from making the decisions that are in the best interest of selling your restaurant. Be honest and divulge all necessary information to your business broker in order to achieve the most success on your sale.
Get Professional Help
When you work with a business broker like Tampa Business Broker, a business sales expert will help you put together the proper financial records to help your business look as appealing as possible to buyers. Call (813) 548-5930 to learn more about your business sales options. The team at TBB can make the difference between just getting rid of your business and selling it for the very best price and terms.