FAS | Blogs, Ideas, Tips, Tricks, Videos for Small Business | Bookkeeping and Tax Services Firm in Katy and Houston, TX

7 Ways To Prepare Your Business For Sale

2018-03-08 07:14:42.0

| Author: FAS

FAS specializes in small business bookkeeping and tax services. We work closely with small businesses in Katy, Fulshear, Houston and nearby areas. Call us for Free Consultation: 832-437-0385 .






 

    For some business owners, succession planning is a complex and delicate matter involving family members and a long, gradual transition out of the company. Others simply sell the business and move on. There are many variations in between, of course, but if you’re leaning toward a business sale, here are seven ways to prepare:

 

1. Develop or renew your business plan.

   Identify the challenges and opportunities of your company and explain how and why it’s ready for a sale. Address what distinguishes your business from the competition, and include a viable strategy that speaks to sustainable growth.

 

2. Ensure you have a solid management team.

    You should have a management team in place that’s, essentially, a redundancy of you. Your leaders should have the vision and know-how to keep the company moving forward without disruption during and after a sale.

 

3. Upgrade your technology.

     Buyers will look much more favorably on a business with up-to-date, reliable and cost-effective IT systems. This may mean investing in upgrades that make your company a “plug and play” proposition for a new owner.

 

4. Estimate the true value of your business.

   Obtaining a realistic, carefully calculated business appraisal will lessen the likelihood that you’ll leave money on the table. A professional valuator can calculate a defensible, marketable value estimate.

 

5. Optimize balance sheet structure.

   Value can be added by removing nonoperating assets that aren’t part of normal operations, minimizing inventory levels, and evaluating the condition of capital equipment and debt-financing levels.

 

6. Minimize tax liability.

    Seek tax advice early in the sale process — before you make any major changes or investments. Recent tax law changes may significantly affect a business owner’s tax position.

 

7. Assemble all applicable paperwork.

  Gather and update all account statements and agreements such as contracts, leases, insurance policies, customer/supplier lists and tax filings. Prospective buyers will request these documents as part of their due diligence.

 

   Succession planning should play a role in every business owner’s long-term goals. Selling the business may be the simplest option, though there are many other ways to transition ownership. Please contact our firm for further ideas and information.

© 2018


We help you plan, forecast and analyze your financial data
so you can get on top of your finances today to grow your
small business big tomorrow.

Make New Years Resolutions to Improve your Small Business Profitability

READ MORE

Basic Bookkeeping Tips and Tricks for Startups

READ MORE

Small Business Bookkeeping Quick Guide: Easy Steps To Success

READ MORE

9 Essential Bookkeeping Practices For Small Business

READ MORE

3 Reasons why Keeping Accurate Records is a Must for your Business

READ MORE

3 Major Financial Statements Your Business Should Have

READ MORE

5 Small Business Bookkeeping Pains That Need Qualified Temporary Staff

READ MORE

7 Bookkeeping Mistakes You Should Never Make

READ MORE

How Simple Bookkeeping Mistakes Cripple Dental Clinics in the US

READ MORE

Petty Cash Risks and Controls Best Practices Preventing Small Business Fraud

READ MORE

Cutting Costs When You Have Gone Over Budget

READ MORE

10 Tips to Achieve a Stress-Free Year-End Financial Closing and Tax Preparation for your Medical Practice

READ MORE

Warning: 5 Ways Incompetent Bookkeepers Can Ruin your Business' Financial Records

READ MORE

The Secrets of Budgeting: 6 Steps to Develop a Perfect Budget Plan for Your Non-Profit Organization

READ MORE

Not Necessarily a Luxury: Outsourcing

READ MORE

Big Data Strategies for Every Business

READ MORE

Meals, Entertainment, and Transportation May Cost Businesses More Under The TCJA

READ MORE

Don't Do These 8 Things If You Want to Have a Healthy Cash Flow for Your Business

READ MORE

How to Feel Secured: 5 Questions to Ask Before Hiring Your Next Outsourced Bookkeeping Service Firm

READ MORE

Business Interruption Insurance Can Help Some Companies

READ MORE

What Every Non-Profit Must Have for Financial Stewardship and Accountability

READ MORE

What You Don't Know Can Hurt You: How to Avoid Trust Account Violations for Lawyers

READ MORE

Your Construction Business May Not Be Doing as Well As You Think Due to Inaccurate Financial Information

READ MORE

4 Cost Centers That Every Medical Practitioner Must Monitor & Control to Be Profitable

READ MORE

It's Time to Get More Creative with Retirement Benefits Communications

READ MORE

7 Quick Ways to Avoid Common Bookkeeping Mistakes for Nonprofit Organization

READ MORE

4 Common Financial Mistakes You Should Avoid for The Benefit of Your Medical Practice

READ MORE

Building A Sales Prospect Pipeline for Your Business

READ MORE

Infographic: Under the New Tax Law You Can't Deduct Hobby Expenses

READ MORE

Do You Make These 4 Common Construction Bookkeeping Errors?

READ MORE

Home Vs. Away: The Company Retreat Conundrum

READ MORE

4 Tips on How to Avoid Common Pitfalls of Bookkeeping for Legal Firms

READ MORE

Tips on Costs Reduction That Every Non-Profit Organization Should be Aware of

READ MORE

L.E.A.R.N. to Earn: How Can Medical Firms Cut Costs

READ MORE

Tips on How to Reduce Your Law Firm's Overhead Costs

READ MORE

Fun fact: What's the connection between the dollar and the Spanish peso?

READ MORE

CONTACT US

Address | 810 S. Mason Road, Ste 160, Katy, TX 77450
Office | 832-437-0385
Email | admin@fas-accountingsolutions.com

Follow us:         

  
Type the characters you see in this image.