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…)