The procedure of selling a running business is quite lengthy. Therefore, it is important to understand the trends that you need to aim for in the next year. Many owners of business structures try to save money and carry out such transactions on their own. However, to get a good price to sell your business online, it is necessary to turn to reliable partners, among them Website Closers . Thanks to such companies, sales are easier and the seller can focus on other issues.
Let’s take a closer look at what strategies for selling a business in 2024 will be most beneficial for customers and how to put them into practice.
Steps for selling a business in 2024
To carry out the transaction as quickly and favorably as possible, you need to think over your actions. Experienced brokers advise clients to act according to the following steps to selling a business in 2024:
- determine the value of the business;
- check the financials;
- find a reliable broker;
- find buyers;
- prepare documents for the transaction.
This plan is advised by all brokers. Therefore, before selling your business, take care of at least the above actions. Let’s break down the importance of each of them in more detail.
Determining the value of the business
An important key consideration for selling a business in 2024 is to realize the real value of the business. This will help you to understand how much the seller is prepared to make the deal for. In order not to cheapen or overestimate the price, it is most correct to invite experts for an evaluation. However, even experts can work with certain clients and artificially lower the price. Therefore, it is important to find an independent appraiser or do a real calculation yourself. A business is valued by
- cost calculation;
- a calculation of the company’s market opportunity;
- calculation of intrinsic value.
The last method is most commonly used because it is the simplest. Once you understand the real value of your business, you can form a price and move on to the next steps.
Prepare financial statements
Potential buyers will want to see the company’s financials. They will also be of interest to lawyers, accountants, and brokers. Therefore, they need to be prepared in advance. Without the right financial documents, it is difficult to preparing your business for sale in 2024.
The most common documents requested by companies are:
- tax returns for three years;
- company balance sheet;
- a statement of financial results;
- cash flow statements, etc.
The presence of errors in such documents will scare off potentially good buyers. Also, the presence of problems in the financial part may force the seller to significantly reduce the price, and this would not want to be allowed. Therefore, before selling a business in 2024, you need to thoroughly go through the financial documentation.
Hire a reliable broker
Among the factors affecting business valuation in 2024, one should not forget the careful preparation of documents and legal support. Reliable brokers can help with this, including Website Closers. Brokers will help not only to quickly find a buyer but will also analyze all offers and help to choose the best option.
With their help, all transactions are carried out promptly. You may have to spend on their services, but you should consider it as an investment to get more profit. Ignoring brokers will lead to months of unsuccessful searches for customers to buy your business.
A broker will help you find a reliable buyer. They vet all offers and research the companies that send them. Thanks to the previous step, you can weed out companies that practice illegal transactions. This will save you from further uncomfortable situations.
Finding potential buyers for your business in 2024 do not accept the very first offer. Sometimes you can pad the price of your business by showing an offer from another buyer. Brokers can help you realize such a move and make many times more money than you could have originally expected to get without their help.
Preparing documents for the transaction
When the price between the buyer and the seller is agreed upon, it is necessary to prepare the documents. The most common documents that need to be drawn up are:
- a contract of sale;
- a list of assets;
- a non-competition agreement;
- website and domain advice;
- bill of sale;
- a security agreement.
You can draft the documents yourself, but it’s best to hire a broker who provides legal and accounting services like Website Closers and get rid of the paperwork you don’t need.