Selling a business during the post-pandemic period is not a walk in the park. With many companies having closed down and others running in losses, few investors want to acquire new enterprises. However, with the right ideas in mind, you will find it easy to sell your business no matter its state.
Check out the guide to selling a business post-pandemic
1. Planning and Preparation
Preparations and planning are key when it comes to selling a business. During the post-pandemic period, your business will record higher profits if you have a good client list and your accounts are in order. Such positive factors make the post-pandemic period convenient for seeking the right buyer.
Prepare and plan what you’re going to do during and after selling your business. Also, plan a selling strategy and gather advice from professionals who have insight about selling a business.
2. Appraisal and Valuation
Determine the worth of your business to ensure you set a fair and reasonable price. Seek the services of a professional business appraiser and get a post-pandemic valuation. The appraiser will give a detailed explanation of your business worth. The valuation documents will make your asking price credible, and you can use them as a gauge for your asking price.
3. Find a Third-party Business Broker
If you want to get the best sales and terms, utilize the services of business brokers. A business broker will assist you in due diligence, negotiations, and valuations. Also, a business broker will assist in marketing, locating potential buyers, and listing your business in numerous marketplaces to have a wider buyer pool.
4. Prepare the Documents
Gather financial reports and statements dating back three to four years and review them with your accountant. Make a list of equipment to be sold and a list of contracts relating to sales transactions. Make copies of these documents and distribute them to potential buyers.
5. Find a Buyer
Have the broker help you to find buyers who offer the best prices and terms. Employ effective marketing strategies to make it easy to locate potential buyers.
After viewing the marketing materials, the potential buyers will reach out and make proposals.
6. Qualify Potential Buyers and Negations
After receiving the offers, qualify them and pick the best candidate. You’ll have to manage and negotiate with a potential buyer. Ensure you apply great negotiation skills to maximize your business value and have good terms.
Prepare all the necessary sales documents after accepting the offer. Such documents include an indication of interest, a letter of intent, and a purchase agreement.
7. Due Diligence, Settlement, and Handover
The most daunting task of selling a business is due diligence. Most sales deal falls apart at this stage. It is the review performed by the buyer to ascertain that all the information you provided is true. During due diligence, lawyers of both sides will work together to complete the purchase agreement and have a successful handover.
After the Covid pandemic, many business owners are considering selling their businesses. If you are such an investor, use the above comprehensive guide to make more informed decisions when selling your business.