8 Tips to Successfully Navigate A Successful Sale of a Company

1.  Keep doing what you’re doing.   The best thing that you can do as a business owner is to maintain your business operations and continue to run a successful company.  The process to sell your business can take many months and the worst thing that you can do is to let the operations slide during the sale because you are preoccupied with selling.  Work with a professional in the field of business brokerage - that is what they are there for.

2.  Work with a professional.  Selling a business is a journey that can last a long time.  Dealing with a business brokerage professional will increase your chances of successfully finding a buyer.  A professional will also protect the confidentiality of your business sale.

3.  Don’t be too rigid.  A business transaction is about give and take.  If you are inflexible during your negotiation then that can potentially harm the deal.  Think about what is important to you and what is not so important.  Negotiate on the basis that you try to secure the best deal that is possible while remaining flexible. 

4.  Be realistic about the price.  A selling price for a business that is at or near market value will attract the most potential buyers and result in a quicker sale.  If you overstate your price then you will not attract as large a pool of buyers and your business may remain on the market for an extended period of time. 

5.  Offer a smooth transition.  If you offer to stay on after the sale of the business to train the new owners that would demonstrate that you are willing to assist in their success and generate goodwill during the negotiation. 

6.  Anticipate.  Think about what a buyer of your business would want to know and have it ready.  If you are selling a printing shop, for instance, you will likely be asked to produce MSDS reports or other environmental documentation.  If you are selling a waste disposal business in Toronto you will likely be asked for city and provincial documentation and licensing.  Scrambling at the last minute is not professional and may be a reflection on how you run the business.

7.  Prepare with your Lawyer and Accountant.  If you have legal, environmental, tax or accounting issues that need to be resolved prior to listing the business for sale please resolve all of these issues.  It is best to market a business for sale with a clean slate with no outstanding issues that may potentially raise a red flag.

8.  Get the business in “sellable” shape.  If your business has drastically reducing sales and is not profitable or is just getting by, it will be difficult to sell it.  Try to think about ways to improve the company’s prospects – perhaps a new service, promotion, new management or cost cutting would help.  Try to get your business in a position that it will be attractive to a large pool of buyers.

Selling a business can be a long and arduous process – but it doesn’t need to be.  Try to think about ways you can make your business more attractive on the market and anticipate what a potential buyer will be looking for in your specific business.

External Resource:

Selling a Company - tips to prepare for the sale, succession planning.