When looking into how to sell a business, Las Vegas business owners need to do so in an educated fashion. Selling a business requires careful planning. Sellers need to makes sure their accounting records are in order, ramp up marketing strategies, and generally do what they can in order to generate high asking prices. As you prepare to sell your business and before you find a buyer, take the following factors into consideration:
1. Determine your company’s worth
2. Clean up your financials
3. Prepare your exit strategy
4. Boost your sales
Determining Your Company’s Worth
Before you make moves to sell a business, you will want to know what your company is worth. Sellers can get a third-party valuation can be done for a set fee. A quality valuation will review your company and its market. The review usually takes into account receivables, inventory and other assets, and outstanding debts. The goal of the valuation is to determine the value of the business based on threats to the business and its opportunities, it overall financial health, market trends, location, and other factors. Usually, small businesses are worth three to six times their annual cash flow.
Clean Up Your Financials
Generally, buyers want as much transparency as possible. Therefore, they are being more careful about looking into the financials of the businesses they are purchasing. Therefore, you would do well to work with an accountant before you put your business on the market. Be sure you can present clean financial statements and tax returns for at least three years. Red flags can appear in the form of keeping personal vehicles on company books and other expenses that are unseemly.
Prepare You Exit Strategy
If you know that you will be looking to sell a business in the near future, be sure that your exit strategy is in place sooner than later. Sometimes an unexpected occurrence can make business owners decide to sell their companies sooner than they anticipated. As a result, you would do well to plan an exit strategy that aims to make a smooth transition for the new owner.
Boost Your Sales
When buying a company, buyers want to purchase a business that has something to offer. Business owners would do well to market their companies a bit more as they are getting ready to sell and to increase their share in the market by adding variety to their customers. Some buyers get nervous when they see that one customer accounts for more than 20 percent of a business’s revenue. Make sure that your business looks like a worthy investment to Las Vegas buyers as you take steps to put it on the market.
