7 Steps to Sell a Business in Grapevine, TX Profitably and Hassle-Free
Are you looking to sell a business in Grapevine, TX? Then you need to consider some things before you do so, because it can get complicated at times due to the complex nature of the transaction. For starters, you may be required to have an accountant, an Attorney for the legal proceedings, and enlist a broker to sell a business in Grapevine, TX to an appropriate buyer. Your success will be dependent on what your reason for selling your business , when you decide to sell it, and most important, how strong is your business when it comes to structuring and operation at the time of you sale. To sell a business in Grapevine, TX, much effort on your part is required; you have to invest your time and energies to go through the process and make a smart investment decision with the profit if you make it big. The following considerations will help you to sell your business successfully.
1. Why are you selling?
You need to put your thinking cap on for this. Consider the point of view of the buyer. One of the first questions he will ask is “why do you want to sell a business in Grapevine, TX?” Typical reasons that owners sell their business are because they may be facing some troubles with the business partnership, or that they find that the workload they face is too high or need to work on a new business idea to develop. They may be close to retirement and reap the fruits of their labor. An illness may cause them to sell their business as well.
When you do decide to sell a business in Grapevine, TX, do so at a time when it is profitable, as an unprofitable business will be harder to sell. Check for the right timing and the how readily the business will be able to sell considering its profitability. A business may appeal to a buyer when it is seeing increased or consist profits in its books and has a strong customer base. A continuing contract also makes sure it doesn’t dissolve if the situation gets too volatile.
2. Planning Ahead
Planning ahead is the key to successful business. Start preparing to sell a business in Grapevine, TX about a year or two in advance to allow you with a margin to improve your business’ customer base, structure and financial position, so it is profitable at the time of sale. The buyer will ease into your company more smoothly and you just might get a premium on your sale.
3. What is it worth?
Business valuation is also necessary to sell a business in Grapevine, TX as it allows you to price it neither too high nor too low than what it’s actually worth. The appraisal document will add credibility to your asking price. It’s the same as a real estate appraisal. So find a professional business appraiser and get your business valued.
4. Broker or not to Broker?
If you decide to go it alone, you can escape from paying a broker’s fee and is preferred when you sell a business in Grapevine, TX to an employee or trustworthy family member. When the situation is different and you need time for other things, a broker might just help you given that you have done due diligence in acquiring one and that you communicate frequently. You can run your business smoothly as you have more free time on your hands, the news about the sale will be kept “hush-hush” as you have a broker dealing with that in total secrecy, and getting a higher price as the broker will be looking his own benefit in terms of commission.
5. Dealing with the Documentation
Get the help of an accountant to review your past half decade of tax returns and financial reports before you sell a business in Grapevine, TX. You may want to develop a list of contacts that you have been dealing with, in sales and supply transactions, equipment being sold along with the business and find other paper work that may be relevant such as your current lease. You should distribute the copies of these documents and lists with potential buyers that are financially fit to buy your business. A modus-operandi manual entailing brief information about your business culture, how it is being conducted etc. should be prepared and any equipment or parts of the business that are not in the best of shape should be fixed or replaced before you sell.
6. The Search for a buyer
Selling your business is a long process that takes anywhere from six months to two years to reach fruition. The search for the right buyer is nothing less than a challenge in this time, so don’t let up with your advertizing and you’ll find a buyer soon enough.
When you get prospective buyers, keep a steady flow to the process. Stay in communication with the potential buyers, finding out if they are prequalified before giving out your business info. Place a reasonable price tag on the business which includes future net worth. For financing a sale, discuss its details with an attorney and accountant so you can get the best deal. Get all buyer agreements in writing. A signed non-disclosure or confidentiality agreement secures your business information while a purchase agreement secured by escrow keeps your business financially secure.
Buyers can also get you to sign a non-competing agreement which protects them from any unwanted competition from a competing business which you may think of starting. Have two to three backup potential buyers you want to sell a business in Grapevine, TX just in case the first deal doesn’t go as planned. Some documents that you may come across in the sale process are a lease assignment, a security agreement (you can retain a lien on the assets till debts are paid; escrow helps with this) and a bill of sale (officially transferring business assets to the buyer).
7. Putting Profits to Good Use
Do you have any outstanding debts? Do you plan to invest? Whatever financial goals you have in mind, take some time to note them down and prioritize the spending of your profits. Learn about the taxation on sudden increases of wealth and utilize the services of a financial professional if you really need to.
We will help you sell your business so you profit, hassle free. Call us at 817-637-1508 to schedule an appointment for the valuation of your business or visit our website.