So, you’ve started to do a little bit of the research about what it would look like to sell your business, but you are not entirely convinced that you are ready to take the next step. Before you’ll truly be ready to sell your company, you must be willing to answer a lot of tough questions. This will come up pretty early on in the selling process when you have your first consultation with a business broker or financial professional.
When to Engage a Business Broker
Most business brokers prefer to work with you at least several months in advance for when you intend to sell the company. This is because there are multiple processes involved and these can all require you to gather different materials and to answer difficult questions for what you might need to gather information. These three key phases of selling your business are preparation, process and post-close.
During the preparation phase, knowledgeable professionals, such as a business broker, will help you answer questions over the course of weeks or even months. There are many different terms and clauses that a company’s seller needs to consider regarding post-close expectations, legal impacts, tax planning, equity, and work force expectations or even renaming the company too.
A trade-up has to considered with every unique decision, which puts you in the driver seat to have a lot of responsibility in the coming months for answering these issues. The result of these tough questions will fall to how a seller wants to find a successful transaction. Any answers to these kinds of questions will impact the valuation of the business and often sellers are caught off-guard by the terms named. What is expected for many sellers are the answers to the questions related to business, strategy and operations.
Whether it’s the history of the company to the current work force and the future prospects or finances at the firm, business brokers want to comprehend your investment opportunity so that they can align it with strategic potential buyers and have a good grip on understanding your business as well. Knowledgeable business brokers will push to have this information as soon as possible in the preparation phase of you selling your company.
As a seller, you will need to work closely with your business broker to be as comprehensive as possible with these materials. Not only will answering these questions would put you in a good position to list the company for sale sooner rather than later, but it will make future aspects of the company going up for sale, such as due diligence, that much easier. Overall, this can increase your chances of selling your company to a qualified buyer as soon as possible and allowing you to move on to the next chapter of your life.