Are you ready to sell your company?
You've seen your business blossom from an idea to a profit-yielding reality, and now you're considering selling. Handing over the reins to the business you've worked so hard to build is a big move, and landing the right buyer requires thorough preparation. In a recent article published by CNBC, author Elaine Pofeldt offers advice for making a lucrative deal when selling your company.
Balance your books.
The ability show hard proof of your company's past and current profits makes the business more attractive to potential buyers. This is also one of the ways buyers evaluate the potential for future increases in revenue.
That patent or trademark you've been meaning to get? Do it now.
"Sometimes owners who do this discover that they have been infringing on the trademark of another business unwittingly," Pofeldt writes. "You'll be much better off if you find out early and fix that situation before you're in talks with the buyer." Additionally, protecting your intellectual property will appeal to cautious buyers, as it eliminates one element of risk.
Ensure the business can survive without you.
As an entrepreneur, you hold institutional knowledge few others are privy to and may even be solely responsible for operational tasks that are integral to your company's success. Having a plan in place for a smooth transition to new ownership will make buyers feel more confident in their ability to acquire and continue to grow your business.
Know the value of your business.
The value of your business isn't fully encompassed by the numbers in your ledgers. Be sure to consider your customers and employees as assets, and try using business valuation resources to help you accurately determine your company's worth. An M&A advisor can also be an invaluable resource, guiding you through the intricacies of selling.
To learn more about mergers and acquisitions, explore the resources offered by MergerTech University.