Preparing to Sell Your Business
Time after time the market has proven that business owners who invest time and resources into preparing their business to sell have more success than those who don’t. Businesses who prepare prior to selling enjoy:
Higher valuations
Smoother due diligence process
Greater cash proceeds upon closing
Fewer post-close escrow charges and claw-backs
Smoother transition from seller to buyer
Greater income and less stress over time
When you engage Pinewood for our pre-sale preparation services, we generate demonstrable ROI by helping you find better buyers, close deals more quickly, and enjoy a better overall deal than those businesses who don’t prepare.
Business Sale Preparation Best Practices
The following are examples of best practices that all business owners should consider prior to listing their business for sale.
Pre-sale Best Practices
Engage an accounting firm to compile, review, or audit your financials
Resolve tax, payroll, and compliance issues and liabilities
Prepare “Re-casted” financial statements
Prepare an information memorandum that outlines the business’s history, industry developments, growth opportunities, and historical and projected financials
Organize all legal, business, and financial documents in electronic format
And finally, engage financial, tax, and legal advisors to structure tax-savings and asset protection strategies to protect your hard-earned wealth windfall
Once a seller has adequately prepared their business and personal matters to withstand the rigors of the sale process and the potential windfall of wealth, the next step is to engage a business advisor to commence the sale process.