You have decided to sell your business but before you reach for the phone and put it into “play” in the market there are five key things that you should do first.
FIVE KEY THINGS TO DO BEFORE YOU SELL YOUR BUSINESS
1. Housekeeping: make sure your accounts are up to date, your tax returns are up to date and any financial skeletons that may be hiding in the closet are chased away Is the stock figure in the accounts accurate? Is the Work in progress figure accurate? Buyers will not want to buy problems, except at a massively discounted price.
2. Make sure your key employees have up to date contracts, with appropriate restrictions against competition, where necessary. A buyer will look at the management team carefully and will not want key staff to walk away with the goodwill and connection of the business.
3. Make sure your insurance is up to date and covers modern risks. If your business depends heavily or in party on the internet then you will need to have cyber insurance, as well as adequate cover against other risks.
4. Check that key contracts with customers and suppliers are in order. The contract may have been signed years ago, and may not take into account the current practises, modern terms and conditions, or even may be in the wrong corporate name. These things are better fixed before a sale, rather than in the middle of a sale when the pressure will be on.
5. Get realistic projections of profits for this year and next year. These will help you understand better what the business is worth.
We specialises in buying and selling businesses and their assets. Our firm was founded in 1978 and since then we have been providing commercial law services to many people and companies.
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