Sell Your Business Online Pointers
If you get to the point where you decide you want to sell your business then making sure that you take the right steps to ensure you do this thoroughly is important. This includes documentation, valuation, employee rights etc. Depending on the size of your business this can be a pretty stressful time so take a deep breath and ensure you take some of our pointers below into consideration.
- Make sure that you get the valuation of your company accurate. Several ways to do this include calculating your PE (seems to be the common language and agreed way to know its worth) or by getting a company / accountant to support you in this calculation. Clearly if you get this wrong it can have devastating effects. If you were to value your company too high then when trying to sell it would become a challenge. If you go the other way and it’s too cheap then there will be some buyer out there that will snap up your company for a good bargain. Make sure you think this through and value your business properly before putting the “For Sale” sign up on the door!
- The method of selling your business will have an effect on how many people are interested. In today’s technology world we clearly advise that you sell your business online and market through different companies. There are lots of businesses for sale UK wide, so there is definitely competition. There are always newspaper ads and different magazines that specifically deal with this however online traffic exceeds both of these by far. When doing this, ensure you use a credible online company that has experience and success rate in selling companies. Check out the reviews of these sites beforehand and get some impartial guidance. Clearly, the more places your advert appears the better chance you have of getting a good price.
- Documentation – Get this wrong then you could be in trouble. There will be different papers that you need to ensure are up to date and available for the sale. This will include your company tax returns. Ensure that these submitted, on time and are credible (these will also affect any valuation you have placed on your business). In addition to this, ensure the documentation in Companies House is correct in relation to your business address details, shareholder arrangements and any returns due.
- Company Reputation – Make sure that even if you have it in your mind that you are going to sell your business that you don’t take the foot off the pedal. A lot of potential buyers will take a look at your company reputation and recent reviews. If you have lost interest for the final periods before selling then this could affect reviews online and lower star ratings. Word on the street gets around and can be extremely damaging to your business therefore make sure you keep full momentum on your company right up until you hand it over to the new buyer.