Questions to consider before selling: Are we ready?
Selling your business is no small feat, and it should not be taken lightly. There are a number of things that you need to factor in before making the decision to let your company go to new ownership. According to Curtis Kroeker, the group general manager for BizBuySell.com and BizQuest.com — two San Francisco-based companies that focus on business-for-sale marketplaces — there are at least three primary focuses you should have when making such a big decision.
"You need to figure out things like if you should sell, when is the best time to sell, and what you need to consider before selling, among many other considerations," he told Entrepreneur.com.
When it comes to laying out the pros and cons of selling, answering some important questions will help you to be sure that it is the right decision for you. Over the next few weeks, we will go over some of the key considerations that you should make when making this important choice.
First thing is first: Is it ready?
It isn't just whether you are emotionally ready to give up the company that you have worked to build from the ground up. Is the company ready for sale? According to Kroeker, you should give yourself — and your team — at least two years of preparation time before you put your business on the market.
You should be able to provide two to three years of tax returns to prove profitability of the business. This will help you get the best price for your company, and really see the full scale of return on investment.
For more considerations and factors to think about before selling, stay tuned to this blog.