California business owners should understand the important steps to take when preparing to sell a business in San Diego or Southern California. Establishing and proving the business’s worth to potential purchasers can be a daunting task, but with the right moves and some guidance from the Watkins Firm you can complete a successful and profitable transaction.
Reports show that in the last three years, acquisition prices have grown by 30 percent. In this climate, business owners should be aware of some issues to keep in mind when preparing to sell their company.
First, the owners should assess their willingness to be purchased, including discussing any pertinent legal and taxation issues which could result from a sale. Next, an analysis of the company’s readiness for purchase should be done. This includes a professional valuation of the company as well as a substantial review of your company’s books and financials. Buyers conduct extensive due diligence and facilitating financial analysis for a buyer is one of the most important steps to take when preparing to sell a business.
The Watkins Firm provides valuable insight and guidance to ownership and business brokers alike to ensure smooth buy sell transactions. We work with our clients to help position the business for maximum value while reducing present and future liabilities and contingencies.
Another of the important steps to take when preparing to sell a business is preparation to discuss market positioning and other metrics that can will make your company attractive to buyers. A buyer will want assess the immediate viability of your company and the post-purchase decisions, changes, actions or additional investment which may be required. Ease of integration into the existing business is a substantive concern for any buyer.
Lastly, the company should prepare a list of different exit strategies, which would include gaining an understanding of the effect each type of acquisition transaction would have on shareholders and management and preparing the company’s presentation to prospective buyers.
Preparing for the sale of a business can be a complicated and difficult process. The business mergers and acquisitions attorneys at the Watkins Firm have decades of experience in these business transactions. We help to guide the parties through the process and ensure the sale goes smoothly.