Aug 11, 2014

Posted by Shanell Calloway in Real Estate | Comments Off on Not Ready to Sell Your Business? Houston, We Have a Problem!

Not Ready to Sell Your Business? Houston, We Have a Problem!

Statistics show that most businesses are sold due to unexpected events in the lives of the owners. This is why it’s so important that your business is sale-ready, even if selling is the furthest thing on your mind. A good exit strategy that can be put into practice at a moment’s notice is like an insurance policy – you’ll be really happy you have it if you ever need it.

If you ever want or have to sell a business, Houston has buyers. However, you have to accept the fact that they will scrutinize every single inch of your business, and it helps enormously if you are absolutely ready for this kind of up close and personal inspection. But how do you go about devising and planning an effective exit strategy? The most important steps to take are:

* Finances – ensure you have accurate financial statements for at least the last three years. All assets and liabilities must be reflected on the balance sheet, and sound accounting practices must be applied. Make sure all business expenses are legitimate.
* Clean Up and Clear Out – this applies to slow moving inventory, equipment…anything that you’re not using or selling, and haven’t for years. If you have no use for it, neither will a buyer.
* Have Faultless Employee Practices – Do you pay overtime properly? Are your employees screened and cleared for the positions they hold?
* Tend To Your Tax – make sure all payments, such as FICA, sales tax etc., are up to date.
* Have Your Business Professionally Valued – this will give you a good idea if the money you can expect from a sale will be enough to guarantee a financially secure future.
* Create A Sales Agreement – this should contain the sale price, business assets and a payment plan. A payment plan indicates you will accept installment payments over the next three to five years, for example. This will appeal to a wider number of potential buyers than if you insist on a once-off, lump sum payment.
* Contact a business broker – to help sell your business in Houston. Business brokers will contact prospective buyers in their networks, show them the business and arrange meetings with you.

Sunbelt Business Sales and Acquisitions have years of experience in selling businesses in Houston. Visit us at www.sunbelttexas.com to learn more.

 

Share

    Pin It on Pinterest

    Shares
    Share This