Are You Really Ready to Sell Your Business?

If you've been running your own business all your life and are getting close to retirement age, you may think that it's almost time to hang up your hat. Yet you'll want to get some value out of your business before you pass it on to somebody else so that you can enjoy that retirement in style. How can you make sure that your business is in good enough condition to sell and, crucially, for the best price possible?

Don't Be Invaluable

One of the biggest problems that any small business owner can face in this situation is over-reliance. In other words, does the business rely on your input to operate, and even if you do have staff who might be able to do the nitty-gritty work, does the company rely on your personal relationships with big clients? Ideally, you should move away from this type of reliance as early as possible and a couple of years before you intend to depart. You should have a team of competent individuals in place who are perfectly capable of taking the reins from you and carrying on if you were not there. This is what buyers are looking for and will help you to get top dollar.

Get Your Books in Order

You'll also want to ensure that your systems, processes, and accounts are in first-class condition. Again, buyers are looking for well-run machines that will require as little input from them as possible and will be impressed if you have up-to-date accounts that are compiled to industry standards. If you don't already have an accountant on your side, now is the time to get one. They will know what buyers are looking for and can also advise you during the sales process if necessary.

Be Strategic With the Evaluation

Do you know how much your business is worth? This is also where an accountant can help you, especially if they have experience in mergers and acquisitions. They can pick your accounts apart to identify what costs are simply one-off expenses (and not likely to be repeated under new ownership) or what items are purely beneficial to the business owner. In this latter case, you may run a vehicle through the business that is primarily for your own use. An incoming owner would not need that expenditure, which would reduce the overhead cost and increase net profit. A higher net profit should lead to a larger valuation.

Start the Process

These are just some of the ways that an accountant can help you put your books in order and make sure that your business is as saleable as possible. Start the process now so you will be able to put your company on the market in the not too distant future. Contact an accounting service to get professional help.