Selling your business can have several reasons. You may be selling your business when you want to retire, a buyer who is unexpectedly interested knocks on the door, or a successor within the family and/or business reports. Sell a business can raise many questions, because where do you start the sales process?
Selling your business is also an important event in your life. It is your life's work that you are going to part with. The sales process is an intensive one that takes some time and requires some preparation. The questions you can ask are: when do you start this process and what preparations can you make as an entrepreneur?
Getting ready to sell
The earlier you start preparing your business, the easier the sales process will be. Proper preparation ensures that the business is made ready for sale. This also increases your chances of a favorable transaction (sales price and terms).
When getting ready to sell, you should think about the financial housekeeping being in order and that the company is in good fiscal and legal standing. It is also important to have a clear business structure in place, this ensures that the staff is safeguarded after any transaction. This combined with a well-organized offline and online infrastructure, makes the company ready for sale.
Business valuation
By making these preparations for the sale, you can move quickly if a buying party suddenly presents itself or, with an eye toward retirement, you can maximize the sale price. When the sales process becomes concrete, a valuation of the business follows. The valuation can be seen as the start of the preparation for a sales process (sales optimization) or the start of the sales process (estimation of sales result).
The valuation can be seen as the starting point of preparation for the sales process
In terms of sales optimization, the business is mapped out and further value optimization is considered. In the event that the sales process has begun, a valuation is made of the sale price of the business. Such a valuation looks not only at the figures of the past financial years, but also at the value a company represents in the future.
The right buyer
Once the business valuation is complete, buyers who meet your requirements are identified. This can be either an internal buyer or an external buyer. For an internal buyer, think of a family succession or a management buyout (MBO). This involves selling all or part of your business to an employee.
With an outside buyer, there are several options. You can think of a strategic takeover, selling the business to another company or an investor, who can add clout to the business with the necessary external capital. Van Oers Corporate Finance has an extensive network of investors with whom it can put you in contact.
Complete the deal
Once there is a match between the buyer and seller, the next steps in the process can be taken. These steps include: negotiating the sales price with associated terms. Drafting and signing the letter of intent, after which the buyer conducts a book examination. After the completion of the book research, the sales contract is drawn up and signed at the notary.
