If you own a small business and are thinking about selling, it’s important to perform some critical housekeeping tasks before listing that business for sale. This can help maximize the value of your business and ensure a smooth sale. Here are 5 things to do before selling a small business in Massachusetts.
1 – Prepare Your Books
Any potential buyer of your small business will want to review your financial records. Make sure that all of your books are in order. This includes separating any personal finances from your business finances. Generate financial reports for the last several years and be ready to demonstrate good record keeping and financial practices. Organize any pertinent records, such as customer or service contracts. A smart buyer will perform a thorough review of all records related to your business. Getting things in order ahead of time is therefore critical.
2 – Stage Your Physical Space
Your office space and business facilities are equally important to a buyer’s perception of value. Therefore, staging your space is one of the most important things to do before selling a small business. Make sure your office and work spaces are neat and organized. De-clutter and make any necessary repairs. Consider improvements that may cost little but have big impact, such as a fresh coat of paint. A modern-feeling and welcoming space will have higher value than one that appears old and in disrepair.
3 – Seek Professional Advice
Understanding the process and implications of selling your business is important. Early on, seek legal advice from a local business attorney and financial professional. Your attorney will guide you through the process, help identify and address potential issues, and protect your best interests. Financial advisors can educate you on tax issues and find ways to reduce your liability.
4 – Get a Third Party Opinion of Value
Among the important things to do before selling a small business is to get a broker opinion of value. As a business owner, you will naturally be emotionally invested in your business, which can make it difficult to objectively set the price. A third-party will help you set a reasonable price based on a variety of factors including current market conditions.
Summary of Things to Do Before Selling a Small Business in Massachusetts
By following a process to prepare your business for sale, you will increase your chances of obtaining maximum value and a smooth transition. The above things to do before selling a small business in Massachusetts are critical. Don’t rush to market. Take the time to make your business presentable and to demonstrate its value to potential buyers. For legal assistance with the sale of your business, give our team a call. We would be happy to assist you.