Selling a business in Western Canada can feel daunting and many business owners are unsure of where to start. Using a qualified business broker can help you successfully sell your business and alleviate a great deal of stress. Here are 4 steps to sell a business in Western Canada.
Plan for the sale of your business
Ideally, start thinking selling your business 18 to 24 months in advance. This gives you time to get your business ready to sell and can help you get a higher price. If you seem rushed or desperate to sell your business, buyers are more likely to submit low offers with conditions that are ideal for them but may be disadvantageous for you.
Prepare your business
Taking the time to correct deficiencies and optimize your business performance is a great investment prior to selling your business. Ensure that systems and documentation are in place. Address any issues that could be seen as a red flag or a deterrent for buyers. Things you should review and address include
- Updating the business plan.
- Eliminating low performing stocks and services.
- Repricing stocks and services.
- Repairing or upgrading equipment.
- Organizing or upgrading the business premises.
Assemble a team of trusted advisors
Put together a team of experts to help you through the process of preparing, listing, and selling your business. Your advisory team should include an accountant, lawyer, and qualified business broker who can provide coaching and an appraisal. Be sure to bring on experts who have experience in facilitating similar transactions.
Obtain a broker opinion of value
An accurate and up to date broker opinion of value will help to determine an asking price that the market is willing to pay. Businesses that are priced too high will languish on the market and businesses priced too low can rob you of a return on your investment. To obtain an accurate opinion of value, a business broker will require
- 3 years of financial statements.
- Monthly sales records for the past 2 years.
- Lease information.
- List of assets and equipment.
- Additional information about the history and current status of your business.
If you are thinking of selling your business in Western Canada, these tips will help you get started. For a selling plan audit and to access a full range of services designed specifically to help you successfully sell your business, contact Acuity Business Group today.