Whether you started your company with the intention of selling it someday or you simply decided that you are ready to pursue other ambitions, finalizing the transaction is going to take some work. In fact, Forbes estimates that only 30 percent of businesses that enter the marketplace actually end up selling.
If you want to ensure your company sells for a fair price, there are steps you can take today to protect yourself tomorrow. Entrepreneur reminds readers that they should take at least two years to prepare their business before putting it on the market, and there is a lot of work they can do during those two years to secure the best price possible.
If you are considering selling your company, turn to a business attorney from Solomon Richman P.C. Call 516-437-6443 to schedule an initial consultation with a Long Island corporate lawyer.
Read on for a few tips for ensuring a smooth transaction when you are finally ready to sell your company:
- Do Not Rush It
If you do not give yourself enough time to perform due diligence and ensure the best deal possible, you are going to regret it. You need to give yourself plenty of time to complete the transaction, and you also need to devote a certain amount of time each week to handling sale-related tasks.
- Prioritize Organization
Orderliness matters when it comes to conducting business transactions. Make sure all records and reports are succinct, organized, and accessible. Potential buyers want to know that you ran your business with an eye for details, and when you present them with comprehensive records that are always in order, they will get the impression that you did.
- Convert All Financial Statements to GAAP
Depending on the size of your company and your own background in business, you may or may not have used generally accepted accounting principles when balancing your books. If you devised your own accounting system, you need to convert all financial statements to the language of GAAP.
Potential buyers want to see documents in a language they can understand, and it doesn’t matter if your innovative system happens to work for your business. In order to appear professional and credible, apply all generally accepted accounting principles to your financial statements before sharing them with potential buyers.
- Be Patient
In order to complete a successful transaction, timing is critical. You might find a perfect buyer, but they may need to raise funds before they can complete the deal. Someone else might have the funds but does not know how to further the company’s success beyond what you have already created.
Ultimately, timing is everything. It is natural to feel stressed about the selling process, especially if you cannot seem to find a good fit, but at the end of day, you have to remain patient and focused. If you can manage to do that, it will all pay off in the end.
If you are considering selling your business but you are not sure how to get started, turn to a corporate lawyer from Solomon Richman P.C. Call 516-437-6443 to schedule a consultation with a Long Island business attorney.