A Seller’s Checklist of Do’s and Don’ts

Do have all of your business documentation ready. Everything starts with it.

Don’t underestimate the value of your business. Owners of privately held businesses usually minimize profits to lower taxes. The financial statements may not reflect the real value of the business.

Don’t overprice your business. The right buyer who is willing to pay the right price may not even want to consider your business because the price is way out of line.

Do offer as favorable terms as you can. Buyers, even good ones, want to leverage the sale as much as possible.

Don’t use a “magic” formula to value your business. Your business is unique, different from every other business out there.

Don’t wait too long to sell. The best time to sell is when business is good.

Don’t wait until poor health or a downturn occurs – sell from strength!

Do allow at least six months to sell your business. The larger the business, the more time you should allow.

Do use a business broker. They can take the mystery out of determining the selling price, prepare a marketing plan of action to maximize the selling price, handle all of the details, and leave you to do what you do best — continue to run your business.

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