At Utah Business Consultants, we provide the best business broker and exit planning services around for those looking to sell a business. From your earliest thoughts about selling all the way to the final paperwork confirming a sale, we’ll work with you to ensure you properly value your business and check all the right boxes on your way to a successful sale.
We’re also here to help limit the kinds of errors or issues that may get in the way of a smooth sale process. And while some of these issues take place during the sale itself, many others will actually trace back to prior concerns within your business, areas that may either complicate or even potentially derail a business sale. Here are some of these issues and how you can work on getting them in order in advance of a potential sale.
One of the single biggest mistakes business owners can make, whether or not they’re considering a sale in the near future, is poor record-keeping practices. Having proper documentation of all major business areas, from expenses and income to more detailed specifics, is vital for everything from assessing your daily success to attracting investors.
In addition, proper records are vital for any sale process. Both business brokers and potential buyers will need to go through your recent books to get an idea of what they might be purchasing, and they’ll look at everything from sales history to operating costs and much more. If your records are in such poor order that this becomes a difficult process, many potential buyers may look elsewhere.
Instability in Workforce
Another issue that might raise red flags for certain buyers is too much instability within your workforce. Too much employee turnover could be a turn-off for many prospective buyers, many of whom crave stability and simplicity when they’re purchasing a new business.
Delaying Investments or Improvements
Even if you think or know you’ll be selling in the near future, it’s vital to continue to invest in the growth and success of the business. This helps it showcase potential future growth value to buyers, something many are keen on when they look into this sort of thing. If you’re delaying such improvements just because you know you’ll be selling, you’re hurting the potential value you could receive.
Down similar lines, no prospective buyer wants to put their money into a business that has failed to meet trends and innovate, whether in terms of technology or some related area. If you’ve resisted an online presence when competitors in your field have taken advantage of such elements, for instance, you will not be as attractive as other businesses.
To learn more about avoiding the kinds of process errors that complicate business sales, or for information on any of our business valuation services or how we’ll help you sell your business, speak to the staff at Utah Business Consultants today.