When should I consider selling my business?
The best time to sell your business is when the business is thriving. Generally, after three years of growth and solid performance a business can be viewed by prospective buyers most favorably. Sometimes outside considerations can force a business owner to sell at a less than optimal time, and in such times VR Business Brokers can analyze the current and past performance of the business and place the business in the best possible light to prospective buyers.
When business owners aim to sell their business not now but in the foreseeable future, VR Business Brokers advises the business owner to reduce expenses where possible and grow sales in order to show the profitability of the business in the best light.
For example, financial statements and tax returns need to reflect the performance of the business accurately. Ideally, tax returns should match their underlying profit and loss statements, but in some cases they will differ, such as when taxes returns are filed using cash basis accounting and the underlying P&Ls are maintained on an accrual basis. In instances such as these, an accountant should prepare what is known as a books-to-tax reconciliation statement in order to explain any differences between the tax returns and the underlying P&Ls.
The appearance of the business matters
Polish the look of the business before the business owner decides to sell. Fix that old sign, replace the worn carpet, give a fresh coat of paint where needed. Make the business look good. Employees and customers like a fresh appearance, and so do prospective buyers.
Keep-in-mind that anything that increases sales also increases profits and the all-important cash flow!
Make it easy on the buyer to make a positive decision by making certain your business shows like a winner.