When preparing a business for sale, it’s important to do everything possible to ensure that all aspects of the business are represented at their very best. This is a great opportunity to improve its perceived value and make a great first impression when you’re ready to sell your business and present it to potential buyers.
Here’s 5 steps to preparing a business for sale and attracting potential buyers:
Tidy up the business.
Whether a business has physical or online locations, everything should appear neat and in tip top condition. This includes cleaning up any unnecessary clutter, making any needed repairs or adding a fresh coat of paint. Any websites and digital assets should be well organized and free of obsolete files. This is also a good time to ensure the business complies with all regulatory requirements, such as health and safety codes.
Prepare a solid workforce.
Skilled employees bring value to a business, while a high turnover can be a red flag to potential buyers. When preparing a business for sale, the owner should develop a high quality workforce that will stay on board after the business is sold. Offering incentives, such as profit sharing and bonus plans, will encourage them to remain with the company.
Remove excess equipment.
Sell off any obsolete or redundant equipment, machinery, fixtures or materials that are no longer used by the business. This may include old computers, furniture or even old vehicles. If the item does not add value to the business, why not sell it or donate it to a worthy cause?
Take inventory and clear out old stock.
This is an opportunity to sell all obsolete or slow moving stock items. Clearing out these items will not only improve sales figures, but mitigate any disputes about the value of old inventory when it’s time to sell. A business stocked with popular and fast-moving items appears fresh and active.
Check all commercial leases.
Review all property leases and check with the landlord to see if they can be renegotiated or reassigned to a new owner. Landlords don’t like surprises and a deal can fall apart quickly at the last minute if the landlord is not informed ahead of time. Some landlords require the new tenant meet certain requirements before they approve the lease.
Taking these steps will make the business more alluring to potential buyers – it may even increase the asking price. All in all, the business should be represented at its very best, from making sure it’s neat and tidy to having all its financials in order. Once you’re finished preparing your business for sale, you can list it on BizBuySell and begin marketing it to prospective buyers.