Perhaps you want to sell your business within the next few years due to factors such as retirement or overscheduling. In addition to requesting a business appraisal for a detailed estimate on your company’s current worth, numerous other tasks streamline the selling process. Review them here to reduce stress and save yourself time. 

How to Prepare to Sell Your Business

1. Organize the Books & Legal Documents

Review your business’s legal paperwork, including the commercial building’s lease or mortgage documents, permits and licensing agreements, and all vendor or client contracts. Make digital and hard copies as necessary, allowing you to easily prove that your business is legitimate. 

Also, organize the business’s books, including all tax returns. Buyers typically request three to four years’ worth of financial documents because they provide information about the company’s history and profitability. These documents are also used to identify any legal issues, such as writing off personal vacations. 

2. Find Ways to Increase Sales

Make your business extra attractive to potential buyers by boosting your sales via old inventory clearances and weekly or monthly discounts for loyal customers. While falling sales are often a reason people sell their businesses, lacking revenue does not entice most buyers. 

If you operate a retail store, restaurant, or boutique, increase foot traffic by enhancing the business’s appearance. New coats of paint, organized and engaging displays, and clean premises all contribute to a visually-pleasing commercial space. Increasing revenue over the next year or so also improves the business appraisal results. 

3. Collect Information for Business Contracts 

Obtain information for drawing up business contracts, including complete asset listings, intellectual property information, employee agreements, and website domain guidelines. Business contracts are up to 50 pages long and ensure the legality of purchasing a business and all of its assets, including inventory, equipment, real estate, and vehicles. If there are any assets you do not want to include in the sale, such as memorabilia and certain cars, you’ll need to list them as “excluded” assets. 

For a thorough business appraisal, contact Certified Appraisers Inc. These talented appraisers serve business owners, investors, and real estate professionals throughout the Houston Metro area of Texas, providing services for small and large operations alike. Call (716) 680-3290 today to schedule a free consultation or visit the website for more information about business appraisal services.