Selling your business can be financially beneficial, allowing you to use your time & money to invest in other projects or to enjoy retirement. Whatever the reasons for selling, the easier and more seamless the transition is, the less costly and time-consuming it will be. The longer the sale takes, the longer you as an owner will continue to operate the business. Read on to find out more about some tips and tricks that you can use that will prove to be beneficial when trying to make a quick business sale.
Preparation of Financial Statements
Preparation is key, especially when regarding the financial statements that show the performance of the business. A potential buyer will review the financial statements to identify evidence about the profitability and the true value of the business. To be confident in an investment, they must complete their due diligence. This is the investigation or exercise of care that a reasonable business or person is expected to undertake before entering into an agreement. Reviewing financial statements and the performance of a business would fall under due diligence.
To make this process transparent and prepare for enquiries, it is best practice to advise your accountant to draw up the past 5 years of financial statements of the company. They must be free from material misstatement so the potential buyers can review the accurate and true performance of the business. Preparing these and having them on hand for potential buyers will save you time as they will certainly ask for them.
Valuation
Another important aspect is determining the business value and pricing it to sell. There are many ways to calculate the value of a business but the most frequently used is reviewing the financial statements. Business value is equal to tour assets minus liabilities. Business assets include anything that has a value that can be converted into cash, like real estate or inventory. There can be other intangible values that need to be determined and factored into the price. To get a trusted and accurate valuation, contact a professional appraiser. They are a third party who can value the property objectively, which provides the valuation with the credibility it needs.
Finding a Buyer
FastCash4Houses can value your business and is here to provide you with numerous options to exit. The team will evaluate your business and give you an offer based on its current value through to the assets and property that are realized. We want to make the process as smooth as possible for you to help you achieve any goals you may have. We are here to give a helping hand and provide you with assistance with selling your business, no matter its size, profits, or type. If you want to find out more about how we can help then visit our website at https://fastcash4houses.co.uk/ or get in contact with us to speak to a member of our team directly on 01204 294356 or [email protected]. At FastCash4Houses, we want to support you every step of the way as you sell your business.
