Consider this: when you are considering selling your Fort Lauderdale business, prospective buyers are seeking clear, objective facts that will convince them that your organization will be a profitable investment for them. You might want to consider contacting a Fort Lauderdale Business Broker. In spite of their initial interest in your business for other reasons, their primary concern will be its profitability. To illustrate the historical performance of your company and justify your asking price, you should have comprehensive, organized documentation and solid bookkeeping.
Prepare substantial financial information in advance; you will be able to establish a fair asking price, as well as identify any gaps or shortcomings.
You should prepare your financial statements for the past two to three years to begin making an accurate assessment of your Fort Lauderdale business. I hope that you have been maintaining accurate records for your Fort Lauderdale business. Should that not be the case, roll up your sleeves, gather your papers, and plan to organize well in advance of your listing. It will greatly simplify the selling process, and you will be glad you did it.
It is advisable to seek the assistance of a small business Fort Lauderdale CPA in order to ensure the integrity of your financial records. It is highly recommended that you find the assistance of a professional CPA to identify any gaps or shortcomings. A buyer may also place greater emphasis on financial statements that have been examined by a qualified accountant. Financial statements that have been audited professionally are often more valid and may increase the value of your property.
In preparation for the sale of your company, you should prepare the following documents:
- Current and past three-year profit and loss statements
- Current balance sheets
- Cash flow statements
- Tax returns for the past 2, 3, or 4 years
- Copy of the current lease
- Insurance policy
- Confidentiality agreement
- Personal financial statement
- Executive summary of the business
- A detailed description of the business
- Professional certifications
- Contracts with suppliers and distributors
- Agreements with employees
- Contract of sale
- Note regarding seller financing
The preparation of your financial statements will allow you to develop improvement strategies and increase the value of your business.
If you obtain your financial records and analyze them for accuracy, you will not only be able to determine an accurate asking price, but you will also be able to identify certain pitfalls and develop improvement strategies. Why not consider the future sales of your organization in addition to improving its value today? The moment your records are in order, you will be able to calculate and improve your earnings multiples. There are numerous factors that affect price-to-earnings ratios, and adequate preparation will allow you sufficient time to take action in order to enhance the value of your business.
A professional business broker may also be a good choice at this time. Establishing a relationship with a business broker ahead of time will enable you to understand what buyers are looking for, what is in demand, and how you can make your business more appealing and easier to sell. In addition to helping you determine a realistic selling price, a business broker can also assist you in choosing the best time to market your business for sale.
A prospective buyer will expect to see certain documents that demonstrate the profitability and value of your Fort Lauderdale business.
Your Fort Lauderdale business will be more appealing to potential buyers if you take the time to collect and organize the right documentation. Clearly, demonstrating a profitable history of your business may be the best method of demonstrating its financial value. It reflects well on you and your business to be prepared with a well-organized package of documents, and it also prevents unnecessary stress.
You should be aware that a Fort Lauderdale buyer may request confidential information from you, such as customer lists or supplier contracts, that you may not be comfortable disclosing during the preliminary stages of the transaction. When this occurs, it is best to explain to the purchaser why you feel uncomfortable. The purchaser’s perspective must also be considered at the same time. The two of you want the transaction to go smoothly, and they are researching their future investment. You should make sure to have a signed Non-Disclosure Agreement, aka NDA, in place before disclosing any confidential information.
The management of detailed, organized records, including strong financial records, is an important aspect of the selling process. You will be more likely to impress prospective buyers if you apply this practice ahead of time. Moreover, you will also have the opportunity to develop strategies that will enhance the value of your business, thereby making it easier to sell for the full market value you deserve.
