Anyone owning a business is usually too busy running and building the business to think about when they will no longer want to or are able to run the business. Some owners act like they will live and work forever. Others just are not interested in talking about anything other than the immediate crisis they are dealing with.
In our seminars we suggest that the time to make plans for selling is when you buy or start a business.
This is good advice for two reasons. First you are prepared in case of a real crisis and second doing the things necessary to prepare for a sale involves doing a better job of running the business and usually makes it more profitable now.
Of course, one of the biggest concerns when it is time to sell is “How much can I get for it?” Simple answer – the better organized and profitable the business is the more we can get you for it.
To really be in good shape to run your company you need to maintain good books and records. If you do this from the start, with your registration records with the Secretary of State as well as your financial bookkeeping systems, you will be off to a good start.
Financials, preferably for three years, are essential! Tax returns for small businesses, compiled financials for small to medium sized businesses, and audited financial statements for large companies are expected by any serious buyer.
If you have employees, keep organized files with records of their initial appointment, a description of their duties, any contracts and any benefit programs you may have for them, as well as complete payroll records.
Depending on the business if you have contracts with customers those need to be up to date and the same with suppliers.
Shareholder agreements, partnership agreements, and other records of the business organization need to be in order.
The biggest issue is having good financial records. Without them buyers will not (and should not!) believe any claims you make about profitability. Neither will a reputable business broker.
If you have done all this, call New Hampshire Business Sales and we can help you decide what the business may sell for and when you are ready, we can get you to market.
If you haven’t done this give us a call to come visit and we can give you advice about how to get ready to have us sell you in the future.