Like many business sellers, who are looking for an exit strategy have the same question. What is the first thing I should do to sell my business. You can watch a short video on YouTube – https://youtu.be/3mtJafwyBOY
We at GillAgency have written a very extensive article on https://gillagency.co explaining in detail how to do just that. We think you will find this very useful.
Today I’ll briefly go over what is the first thing as a seller you should do to sell your business.
Firstly, you have to have your financials in order. When I was in the business of buying businesses, I was quite surprised when the business owners didn’t really know what their cash flow was. This is a turnoff for potential buyers and the due diligence can drag on for many months. When we represent a sale of the business the first thing we do is just that. We analyze the profit and loss statements, balance sheets, tax returns, and other financial statements, with the help of the seller and the accountant. During this process the seller realizes how important these line items are on the financial statements.
You as a seller need to sit with your accountant and go through these statements to figure out what your cash flow is, among other items. Knowing the cash flow will help you apply your industry multiplier to come up with an asking price. It also helps you be more educated when you are talking to buyers and they have questions regarding your financial statements. You can easily answer the buyer’s questions without having to go back and forth with your account.
As always we are here to help answer any questions that you may have and or to assist you. We are bettering the business brokerage world through ethics, honestly, transparency and education.