Selling a business could be as tiring as building a business from scratch if not done right. As such, it needs to well planned and sorted out to avoid confusion and conflict. The idea of selling a business is usually the last thing that a businessman plans, but it would be safe to say that it is best if the exit is planned ahead of the actual sale of the business. With that in mind, here is a list of seven details that you need to consider and pass on to the buyer when you’re selling your business.
1. Client base
Before you decide on shifting your business’ ownership, one thing that needs to be taken care of is the client or the customer base that your business possesses. A main reason why anybody would be interested in buying your business that the business has a sufficiently large customer base. For example, if you have a business for sale in Nevada, you need to inform your business buyer about all the customers related to your business in that location.
2. Suppliers
You also need to keep in mind before you sell your business to inform your business buyer about all the relevant and required information about your suppliers. Also, you need to let them know about the relations that you share with suppliers so as to make the dealings easier for the new owner after you hand over the business to them.
3. Employees
Any business, whether it is sold now or ten years later or never sold at all, should be concerned with taking care of the employees and preparing them for leadership positions that they might need to take on in case of a shift of the ownership of the business. Just giving the employees the information about the sale of the business is not enough.
4. Tax and returns
Information about the filing and return of tax policies and insurances form a major part of the deal if you’re planning to sell your business. And this information, without any question, should be shared with the new owner of your business. This will allow the new owner of your business to anticipate the total taxes that need to be paid.
5. Inventory
You should also hand over a detailed list and elaborated chart of the inventory that your business possesses along with the type of equipment, their safety guidelines, reviews, utilization, year of purchase etc. These are a few things that would help the new owner to run the business in your absence smoothly, without having much trouble.
6. Leases
All the relevant and required information about any current leases that the business might have should be notified to the buyer of your business along with the required documentation to provide evidence for the same. With the recent real estate CAM changes, ensuring you have documentation up to date is more important than ever. Furthermore, the buyer should be aware of the terms and charges of the lease so as to make the decision thoughtfully.
7. The profit and loss balance sheet
Your business buyer has the right to know all the details of the profits and losses that the company has been through in the last few years. Make sure that you do not forget to hand over a balance sheet of the profits, losses, incomes, and expenditures of the company to the buyer once you find a potential buyer that has signed a confidentiality agreement.
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