Massachusetts residents who are considering selling their businesses may want to look into ways to increase the sale price of their organization. If they have spent years building and growing their businesses, they want to ensure that they receive as much money as possible for their efforts. Even if someone has a successful business, there are ways to make his or her organization more attractive to buyers. Ways to improve a business sale price include making sure finances are in order, having multiple streams of revenue and taking advantage of legal assistance to guide the process.
Even if a business has a large revenue stream and is able to point to solid profits, if the establishment’s finances are a mess, it may turn off prospective buyers. Buyers should easily be able to navigate a business’s bank accounts, expenses and tax records. If they are not able to, individuals interested in purchasing a business may suspect it is not profitable as it seems, or they may not want to deal with the hassle of getting its finances in order.
Those interested in purchasing an organization often look for more than one source of income. If a revenue stream dries up due to economic or outside influences, the business is likely to struggle, which is not attractive to prospective buyers. However, if a business has multiple interests that provide revenue, it is likely to be more stable and a more attractive purchase.
It can also be beneficial for business owners looking to sell to take advantage of legal advice. A lawyer could help business owners understand how taxes could impact the sale of their businesses, ensure a buyer’s financing is solid and help them navigate laws related to disclosure and indemnification to avoid future liability issues.
Source: Time Business & Money, “Go for Broker: How to Sell Your Business for More Money“, Lauren Simonds, July 17, 2013