Question of the Week: How can I speed up the process of selling my company?
A: Much of the timing of the sales process is out of the Seller’s hands, but there are a number of things that you can do as a Seller to minimize the overall time to sell your company and the time the ball is in your court.
- Price the company correctly. Talk with your broker about price vs. valuation and the inherent trade-offs between the two.
- Let your business broker handle the day-to-day noise of the transaction so that you stay focused on growing the revenues and profits of the business. Nothing slows down a buyer like declining revenue or profit.
- Respond quickly to questions your business broker has or relays from potential buyers.
- Clean up your books and keep your financials updated (i.e., don’t get behind on entering revenues and expenses into your accounting system) so that you can create Profit and Loss Statements (P&Ls) soon after month, quarter, or year end.
- Get your tax returns completed before mid-March. Avoid the rush and do not plan on filing an extension – both buyers and banks are going to want to see recent tax returns.
- Organize your contracts, insurance policies, tax returns, etc. Scan them so that you have electronic versions. Your business broker will create a customized list for you and a secure Share File folder where you can upload them.
- Pick the right attorney (more on this in a later Question of the Week).
Next Week: What is the process to sell a company?
