Process For Selling A Business

July 31, 2012 - PRLog -- Selling a business will not always have a story book ending. This is once in a life time opportunity to get the returns for your years of hard work and time. This financial transaction will have a greater impact financially and emotionally.  With this fact on mind have a sound plan for selling a business and focus to make real happy endings. Research on the internal dynamics, your benchmark on expectations, finances, growth and go for the wide range of opportunities.

There is a famous saying “Any fool can start a business. It takes a smart or lucky person to make it profitable. But it takes a genius to exit a business successfully.” There are many ways in selling a business, but here is the one of the best process that can help you maximise the selling price and to avoid major pitfalls.  

Determine the worth of your business. While selling a business, opt the most commonly used method of valuating a business.  Valuating the worth of business is something like you fix up the price to any product or service. You need to research a lot to set price before selling a business at http://www.bizworldusa.com/how-to-sell-a-business-in-amer....  You can start by looking into the value of assets. After all any buyer should start the business with the same assets. The assets may include equipment, inventory, systems and many more. The other way is to calculate based on the sales multiples of the industry.

Prepare your business for sale.  Selling a business initially needs the ground work of preparing the financial statements, customers and management. This will help a lot to decrease the risk while selling a business and increases the worth of it http://www.bizworldusa.com/american-business-for-sale-sel.... So, to attract a potential buyer who is qualified and willing to buy your business is to present it in best light.

Screen and select the potential buyer.  The ultimate end of selling a business is to keep it in the hands of a worthy buyer and to gain some profits. Find the list of buyers who are willing to buy your business. Of them you can find many are interested, few don’t have money to make, and only small number will be the qualified buyers. Prepare a selling memorandum which should include salesmanship and truth, putting your business in the most positive light. Follow up with the buyers, meet them and make sure you keep every fact about selling a business in open light.

Get the letter of intent. The Letter should deal on offering price and terms, as well as other important information. Now verify all the LOIs you receive and go for the top price first for selling a business on http://www.bizworldusa.com/seller-business-cash-flow-to-b.... And if that deal fails, go for the second top you selected and so on.

Maintain Due Diligence - This includes intensive verification of financials, inventories and sometimes interviews with key employees. It’s a stressful process but will result in the best satisfaction of selling a business.