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There are a lot many things to do before selling your business. If you can, then take the help of a company lawyer to understand the nitty-gritty’s of selling your business. Firstly, you should understand why you want to sell your business. If you are undergoing losses, then it makes sense. If you are making profits, would you throw it all away?
Before selling your business, you should understand its value. What is it worth? How much can I sell it for? Get the help of consultants who can adjudicate the worth of your business. For this, you need to furnish your balance sheet and other sources of income.
You can always adjust your balance sheet to favorable market prices. Take the help of an accountant to do this. This way, your discretionary income is factored-in, making your balance sheet something to consider for prospective buyers.
The adjusted balance sheet will also weed out liabilities. Typically buyers would not want to invest in this portion unless an agreement is reached between the parties.
Your accountant or consultant will tell you the benefits of asset sale over business sale. Make the selling of your business a case of selling assets. You can get tax benefits with this approach. Other things include reduced liability due to ownership of the business.
Sellers want to know the business before they lay their hands upon it. You need to prepare a report of what the business is all about. A detailed description of the business, its processes, branches, subsidiaries, and so on will help. The more information you provide your sellers, the more closer you will get to the deal.