I often get asked, “What Can A Business Owner do to prepare his business for sale?”
In general, and simply, and as an opinion only, there are certain actions a Seller must perform to insure the successful sale of his/her Business and maximize the amount of the sale price a Buyer will pay for his/her Business.
Keeping in mind in this market or any, “It’s all About the Buyers”, think like a Buyer.
1. Walk outside of your Business. Ask yourself, “What can I do as the Seller to make this Business more attractive. What would I pay for this Business? What can I do to get more for this Business?” Take action.
2. Like any other item for sale aesthetic presentation is key, presentation is everything.
- Clean up the Business.
- Get rid of any old unwanted items.
- With retail business first presentation is key.
- Keep your windows clean, make sure your Open Sign is straight and well lit.
- Replace any burned out bulbs, and make sure that all outside building signage is properly illuminated.
3. If you are advertising or have Marketing plans in place, keep it up! Do not cut it back in anticipation for your sale.
4. Repair any broken Equipment. Contractually you are bound, that all Equipment must be in working order, and a Buyer will look for any reason not to pay full price.
5. Organize and prepare to share your Books and Records. First and foremost and cannot be emphasized enough is your books and records. Buyers and institutional Lenders want to see proof of your income and expenses, and they want it justified! Tax returns, CPA prepared Profit and Loss Statements and a Balance Sheet, Bank Statements, Point of Sale System printouts (if you have one) and actual receipts are the customary proof that a Buyer and his CPA will accept. Generally, if you don’t claim all of your sales, you will not be paid for it in your sale, and it is against the Law.
6. Prepare a detailed List of Furniture, Fixtures and Equipment and use Serial numbers of Equipment. The Buyer needs to know exactly what he is buying, and it will protect you as the Seller.
7. Have an updated copy of your Premises Lease available, Options to renew and any Addendums to that Lease, accompanied by a current monthly Rental Statement, along with the possibility of your year end settlement statement of Common Area Maintenance Charges from your Landlord.
8. Choose your Arizona Business Broker carefully. They need to be experienced, actual hands on previous Business Operation by your Broker I see as essential, because he can locate himself more thoroughly in the position of the Buyer and the Seller. In addition, it enables him to know what information a Buyer will need to make your sale, and help you to price your Business more effectively, not waste time, and get your Business Sold. Being in that position himself, he has a clearer understanding of your Sellers emotion and what you’re trying to get accomplished.
The Devil of any Business Sale is in the Details.
If you are seeking to be an Arizona Business owner or selling your Arizona Business be sure to contact Terry Tretta, the AZ Business Broker at (602) 550-3645 direct.
If you are interested in seeing what Terry has available, be sure to contact or email Terry Tretta today! Terry has personally owned several businesses and is familiar with the details of owning and selling an Arizona business.
