How to Sell Your Business

May 31, 2019

Building a business takes time, money and effort. While successfully starting a business from scratch is often mischaracterized as the most difficult part of business ownership, managing a successful company can be just as challenging.

If you’re ready to reduce your stress level or embark in a new adventure, selling your business may be the most logical plan of action. In addition to hiring an accountant service in Los Angeles to get your finances in order, here are additional things you can do to successfully sell your business:

Figure Out the Value of Your Company

Before you put your business on the market, you need to determine its value. A skilled Los Angeles accounting service can help you determine what your company is worth. In general, small businesses are worth anywhere between three and six times their cash flow amount annually. There are other factors that can determine how your business is valued, including market demand, location and overall financial health.

Locate a Good Business Broker

You’re more likely to get a good offer for your business if you hire a professional business broker to help you close the deal. Business brokers usually charge between 5% and 10% of the sales price to cover commissions. For many business owners, having a skilled professional help them find the right buyer is well worth the commission cost.

Clean Up Your Financials

No one wants to buy a company that has messy financials, so make sure yours are in order before you put your business up for sale. You can locate weak areas and clean up your financial situation by hiring an Encino accountant. Send the accountant all your business tax returns and financial statements for the last few years so he or she has a good overview of your current situation and can make improvements before you sell.

You may also want to pre-qualify your buyers to make sure you don’t get overexcited about an offer that won’t be approved. Following these steps with the oversight of an accountant service Los Angeles can help you successfully sell your business in minimal time.