Preparing to Sell Your Business
Selling a closely held business takes time and effort. There are many reasons to sell; from financial pressure, lack of a succession plan, age of the owners, etc. It’s imperative that you have unquestionable representation during this process, from your attorney’s, CPA’s, broker, or investment firm. A keen understanding of your business is absolute, it will quickly become apparent if you don’t have this understanding and it will adversely impact the sales price. Gathering together all the due diligence materials is the most time consuming and onerous tasks. Determining the value of your business is not the price you need for retirement or the price you want. Calculation of the value is determined by various methods; discounted cash flow, multiple of earnings, working capital calculation, or various other methods. Once you have all the pieces together, you need to feel comfortable with the process and the final outcome. This is a process, it is not going to happen overnight, you can’t wait until you are 65 and expect to sell in a few months.