I Have No Books or Records, Can I Still Sell My Business?

If you own a successful business and feel ready to sell your company and move onto your next big adventure, there are many factors you need to consider. Your prospective buyers want to see clear, objective facts that they can evaluate to determine whether your business will be a profitable investment.

Even if potential buyers are attracted to your business for other unique and personal reasons, a sale won’t stick without promise of a strong bottom line. You need to provide all sellers with comprehensive and organized financial documentation. If your business does not have books or records, you must create them before any sale can occur.

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! (more…)

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I Am Behind On My Rent, Can You Still Sell My Business?

Selling your business is a serious decision, one that requires careful preparation. If you lease your business space and are currently behind on your rent, you may worry whether you can sell your business at all. Here’s what you need to know to tackle this obstacle and still achieve your goal of selling your business.

How Much Do You Know About Your Business Lease?

Your business lease is much more than the amount of rent you pay to your landlord each month. Your lease has the potential to make or break the sale of your business. Since you don’t own the commercial building associated with your business, any effort to sell your business will require you to create a lease assignment, which transfers your association with your commercial lease over to the buyer. This allows the buyer to take over all obligations attached to your lease.

Approach Your Landlord If You’re Behind on Rent

Keeping up with bills can be challenging if your small business is struggling. For most businesses, rent is the largest monthly expense, which means it’s also the first to fall behind. Though laws vary by state and the terms of your lease, your landlord does have the ability to remove your business from its location and terminate your lease, giving you only a short amount of time to remove all assets from the property and vacate.

If you have a positive working relationship with your landlord, it might be possible to negotiate an agreement to catch up on your rent. An agreement could prevent notices that lead to the eviction process, thereby preserving your good standing as a tenant and making it possible for you to sell your business. (more…)

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How to Get the Money Fast for the Sale of Your Business

It is never anybody’s goal to sell a business for less than it’s worth, but that is often the reality for business owners who plan poorly or work with an ineffective business broker.

If you are beginning the process of selling your business, it is essential you use the following tips to ensure you get the most money for your sale. A high priced sale can fund your retirement, get you out of debt, pad your savings account, and help you begin the next great adventure in your life.

Sell When You’re Doing Well

Don’t wait until your sales have declined or your business is on the brink of bankruptcy to sell. While it’s possible to do so, you will get the most money for the sale of your business by listing when you have substantial proof that the buyer will inherit a thriving operation. Rather than defending business blemishes, you will be able to command a higher listing price thanks to the many assets and strengths your business offers.

Become the Master of Your Financial Records (more…)

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Why 90% of Businesses Never Sell

Selling a business isn’t easy. In fact, according to the International Business Brokers Association (IBBA), up to 90% of businesses never sell at all.

If you are thinking of selling your own company, you don’t want to become one of the 90%. This is why it’s so important to understand the reasons other businesses have failed and find a business broker who knows how to help you close a profitable sale.

Poor Financial Reporting

Messy, outdated, or imprecise financial records can tank an otherwise promising business sale. No buyer wants to see financial information that has clearly been mismanaged or neglected. The state of your financial records reflects upon the entire state of your business, and you will struggle to find a committed buyer without clean and refined financial reports. (more…)

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