Buying and Selling A Small Business
Starting a company from scratch can be daunting. Maybe that’s why the idea of being able to “turn the key” and walk into a business that’s already in full operation is so appealing. The new owner instantly gains a name, employees, vendors, customers and income. But buyer – and seller – beware. The sale of a business requires time, research and careful planning, even if professional advisors help with the process.
Buyers must do their homework
The process has many phases: searching for an appropriate business, analyzing business and financial data, developing a viable
offer and then doing all it takes to close on the sale. Then, the real work begins. It takes experience and expertise to make a smooth
transition to new ownership, without the business “skipping a beat.” Once the sale is finalized, the current owner may not be around to answer questions.
Sellers have work to do too!
Years before they put their business on the market, sellers should perform an evaluation. This allows time to groom the business,
making it more attractive to potential buyers. This is also a crucial period that should be used to track and gather several years of
business and financial information. Buyers will want to see complete financial data — and sellers should have it ready to present to them.