General advice for selling a business.
Selling a business is not an easy thing to do. It is recommended to use at least a jurist, an accountant, an investment consultant or a business broker to make sure you shall obtain the desired price and that things will unfold as you wish them to.
It is not recommended to use the services of a real estate agency unless you wish to separately sell the real estate properties. Usually a business is sold on the whole with its assets and liabilities, with its real estate goods and with its on going loans. In normal conditions the value of a business is bigger than if selling its assets separately. The value of a business is given by its lucrative aspect.
In Western countries, in Great Britain but especially in the USA the sale of a business is done by a business broker, an intermediary specialized in business sales. A business broker ensures the confidentiality, s/he knows the profile market and can have an important role in capitalizing the business, due to his/her experience.
Before you actually proceed to the business sale it is good to have a selling strategy. It is recommended to establish an action plan, to prepare the necessary steps for capitalizing the business. It would be ideal to plan five years before the moment of sale.
Pieces of advice:
Try to have a constant increase of the business turnover and of the profit.
Accountancy tricks or tricks of any other nature are not recommended as they lead to a decrease of the profit that can be taxed. It is recommnded to pay a higher tax than to have a smaller profit.
Give up last years investments in order to increase the lucrative aspect of the business.
Restructure your business in case you have more activities, an unclear situation of the real estate or in case the company uses its own real estate.
Try to involve as less as possible in the unfurling of the business. The potential buyers might be disturbed if you imply too much in the unfurling of the business. In the best case scenario, the buyer can ask you to remain actively implied in the company for a certain period of time.
Hire a performant management team.
Make sure the book keeping is correct and up to date.
Make sure you fulfill all the legal requests related to the employees, to the medical visas, to the work protection, to licences and authorizations, etc.
Try to contract long time period commercial contracts.
Try to increase the number of clients.
Register your rights of intelectual property.
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