What to know about selling a small business

On Behalf of | Aug 3, 2021 | Uncategorized |

Selling your Oregon small business can be an effective way to secure your financial future. However, there are many steps that you’ll need to take before a transaction is finalized to ensure that you get a favorable deal. For instance, it is generally in your best interest to hire a professional who can estimate how much the company is worth before it’s listed for sale.

Organize the company’s financial records

A potential buyer will typically want to see tax returns and financial statements for the last three years. Furthermore, it may be necessary to provide a buyer with a financial statement for the current fiscal year. If you can’t provide these documents, they may feel as if you have something to hide. Even if you have nothing to hide, few people are going to feel comfortable acquiring a company without getting a clear idea of its financial health.

Take steps to make the company more aesthetically appealing to buyers

If your company owns a warehouse, office building or retail location, it can be a good idea to clean them in preparation for a sale. A buyer who sees that you have taken care of key assets may be willing to pay more to acquire them.

What’s your exit strategy?

It’s important to know how you will leave the company after it has been sold. For instance, you may decide to stay with the organization for six months or longer after the sale to facilitate a smooth transition to the new ownership team. A business attorney may be able to provide insight into how to structure a sale to best meet your needs.

If you are planning to sell your business, it may be a good idea to have a team of professionals guide you through the process. This will include at minimum an attorney and an accountant.