How to Prepare Your Business for Sale and Why You Should Start Now

As the owner of a small business, this might be the first time you are considering selling your business. It is natural for you to feel overwhelmed and wonder how to sell your small business. We have worked closely with thousands of business owners like you over the last few years, and understand where you are coming from. Serious business sellers often ask the question – How can I prepare my business for sale? Hence, we thought of sharing our experience in this article along with a few expert tips that can help you with sale preparation. 

Why Should You Prepare Your Business for Sale?

Preparation is an important step in the process of selling your business. The key benefit of sale preparation is that it helps you take stock of your business and review it with a fresh eye. Sometimes, as a business owner, you tend to get so involved in the day-to-day affairs of the business that you barely get time to take a hard look at how things stand, and consider things as objectively as possible. Sale preparation can help you do that.

Secondly, good sale preparation can help you create a great first impression on prospective buyers. Having your books of accounts in order, sorting your key business documents, reviewing your internal systems, and doing organizational improvements can go a long way in smoothening the sale journey for you. We have seen many situations where efforts made on sale preparation even led to better valuation – for example, a staffing solutions company spent a year on fixing its organization structure issues and eventually received a valuation that was very close to the owners’ asking price.

What Does the Process of Sale Preparation Entail?

While there are no hard-and-fast rules about how to prepare your business for sale, we advise that you take a methodical approach to it. You can start by getting together your key team members, preferably from different functional areas such as marketing, distribution, finance and accounts, product development, human resources and so on. Seek their objective view on how things stand and what you can do as a team to make things better.

If the exercise starts to get too overwhelming, take a time-based approach – what can you and your team do in the next 1 month? 3 months? 6 months? Who will be responsible for executing each of the key improvement areas? Who will they be accountable to? Keep an eye on the on-going affairs of the business too – this exercise should not disrupt your usual business as far as possible. Monitor the results of sale preparation periodically and make sure your team members take it seriously.

How Long Will It Take to Prepare Your Business for Sale?

The duration of sale preparation is again a matter of your judgment. Technically speaking, it is a function of two parameters:

a) How much improvement do you want to make in your business?

b) By when do you want to sell your business?

Goes without saying, the more improvements you want to make, the more time will be required. As an entrepreneur, it is important you distinguish the critical aspects from the less important ones. For example, having the books of accounts in shape is a top priority for most buyers.

Secondly, keep an eye on your timeline goals for selling your business. For example, if you must sell your business in a year, you cannot spend more than 6-8 months on preparing your business.

When Should You Start Preparing Your Business for Sale?

The answer is – now!

Yes, if you are seriously considering selling your business, you should start sale preparation right away. There is no good time to start. The earlier you start, the more prepared you will be at the time of handling buyer inquiries, and the more advantage you will have. You will also be able to take stock of things better and get an objective view of where your business stands as of now, and how much can be done in what time. The more you delay, the more you will lose out – one of the common mistakes that sellers make.

So, what are you waiting for? Now that you know how to prepare your business for sale, go for it! At IndiaBizForSale.com, we help thousands of business sellers make their businesses more saleable and connect with matching buyers quickly. To know more about what we do and how we can help you, write to us at [email protected].

Want to Sell a Business in India? – Get Started Today!

You have a business and want to sell it – how do you go about it?

Things are usually harder on this side of the table, i.e. when you are the seller of a business. Why? Simply because the onus is on you to get noticed, prove your worth to a buyer and go through the rigour as he deems fit.

As a leading digital platform for matchmaking between buyers and sellers of businesses in India, we can tell you this – you are not alone. IndiaBizforSale is an online platform for buying and selling businesses, and providing services to facilitate the transaction for both buyers and sellers. This article is a baby step towards giving you a drift of what it truly means to sell a business, and how we can help! Continue reading “Want to Sell a Business in India? – Get Started Today!”

Find Buyers To Sell Your Business

Newsletter Issue 35
March 2016

BizNews: Your Monthly Refresher for Buying and Selling of Business in India

Find Buyers To Sell Your Business

In last 2 years and 3 months, as a platform we have grown many folds. We have received the applaud from many users who have successfully closed transactions, earned mandates, formed partnerships etc. We are very glad to share below highlights

Successes so far
12             Business Transactions Closed
15,000+  Sell-side & Buy-side Direct Introductions
1,150+     Business Opportunities: Sell-side Listings
1,850+     Businesses Wanted: Buy-side Listings

IndiaBizForSale.com is India’s largest platform providing easy solution for SMEs to find the counter party to a business sale transaction. Let us help you in connecting with the right Business Opportunities in India.

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Expanding Horizons for Business Buyers and Sellers in India

July 7th 2015 Ahmedabad, India

It is great news for all the entrepreneurs and aspiring entrepreneurs in India, India’s largest online platform, indiabizforsale.com, which is helping businesses get bought and sold, has decided to give its customers a better and wider reach and hence has empanelled with another web portal clickindia.com, which is a well-known online classified ad portal, for listing their prospective sellers from today.

Indiabizforsale.com and clickindia.com have decided to ensure that all the business for sale listings available on indiabizforsale.com would also be now available on clickindia.com for the potential buyers to explore. Having said that, the companies have also decided that only a broad description of the listings would be posted and no information regarding the identity of the seller or the company would be disclosed on either clickindia.com or indiabizforsale.com giving them the much deserved privacy and confidentiality.

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Entry in India through Business Opportunities in India

Invest in India is the mantra for lot of multinationals since India’s GDP size to cross $3 trillion in five years in 2019. This year India is set to become a $2 trillion economy. Currently India is the tenth largest economy in the world. Improving GDP will make India seventh largest economy in 2019 as per IMF’s latest world economic outlook.

A sharp increase in M&A activity in India since the new government assumed office in May 2014. 19% increase in value and 12% in volume over 2013, it is a positive trend this year, the activity of M&A has jumped 16.5%. As per a recent study by Thomson Reuters, the value of announced M&A deals involving India businesses reached $26.1 billion during the same period.

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5 Mistakes Generally Business Sellers Make In India

You don’t have second chance to sell your business at good price. If you sell business in India, please make sure that you avoid these mistakes and you will sell your business quickly and at a good price.

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