Preparing a business before selling
Posted: Tue Jan 28, 2025 6:24 am
Let's say, for example, the owner has decided to sell the company. There is no need to immediately rush to find buyers (although many would do just that). First, it is necessary to carefully prepare the company for sale, namely:
assess the state of the business;
to assess its value;
to verify the accuracy of the documents (charter and others), conduct a legal examination;
assess how well the company was managed;
conduct an accounting audit;
predict prospects;
create presentation and switzerland email list reference materials for future buyers.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Don't be fooled into thinking that if the business continues to function normally and bring in profit, then you have nothing to worry about. In the process of preparing for sale, you will be able to discover the weak points of your enterprise, correct the shortcomings (before the buyer sees them). Then, perhaps, based on the results of the examination, it will become clear that the business can be sold for more than originally planned (and this is also not bad).
In addition, audits help to identify any old debts that must be paid before the sale. For example, if we are talking about selling a rental business (and the tenants have debts) or some amounts of taxes have been underpaid, etc.
What else does a competently conducted pre-sale preparation give? The opportunity to carefully think through the alienation procedure, distribute shares between the participants, and develop an optimal algorithm for implementing the process. All this will allow minimizing possible risks for both the seller and the buyer.
Preparing a business before selling
A third party that is not interested in the outcome of the transaction should participate in the pre-sale valuation of the business. For example, an auditing, accounting firm or a special agency (these also exist), which will give an objective assessment of all documentation, accounting, profitability and prospects of the enterprise being put up for sale.
It is important that the experts take a truly independent approach and do not try to somehow inflate or lower the price. In terms of time, all this can take from two months to six months (depending on whether the company is large or not). The seller, more than anyone else, should be interested in discovering all possible problems in order to eliminate them and sell the company at the most favorable price.
The next step is to prepare an investment memorandum (for future buyers). In it, the owner sets out all the advantages of his business. The form of this document is free, and it should include the following information:
what exactly does the business offered for sale include: production (along with equipment), real estate, vehicles, etc.;
list of all companies, divisions, franchise enterprises;
partners, contractors;
a list of the work performed with a description of its features;
turnover volumes (monthly, annual);
financial documentation (that part of it that does not constitute a commercial secret);
information about employees (who is on staff, what education they have, level of professionalism, who is the most valuable of all, etc.);
development prospects.
assess the state of the business;
to assess its value;
to verify the accuracy of the documents (charter and others), conduct a legal examination;
assess how well the company was managed;
conduct an accounting audit;
predict prospects;
create presentation and switzerland email list reference materials for future buyers.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Don't be fooled into thinking that if the business continues to function normally and bring in profit, then you have nothing to worry about. In the process of preparing for sale, you will be able to discover the weak points of your enterprise, correct the shortcomings (before the buyer sees them). Then, perhaps, based on the results of the examination, it will become clear that the business can be sold for more than originally planned (and this is also not bad).
In addition, audits help to identify any old debts that must be paid before the sale. For example, if we are talking about selling a rental business (and the tenants have debts) or some amounts of taxes have been underpaid, etc.
What else does a competently conducted pre-sale preparation give? The opportunity to carefully think through the alienation procedure, distribute shares between the participants, and develop an optimal algorithm for implementing the process. All this will allow minimizing possible risks for both the seller and the buyer.
Preparing a business before selling
A third party that is not interested in the outcome of the transaction should participate in the pre-sale valuation of the business. For example, an auditing, accounting firm or a special agency (these also exist), which will give an objective assessment of all documentation, accounting, profitability and prospects of the enterprise being put up for sale.
It is important that the experts take a truly independent approach and do not try to somehow inflate or lower the price. In terms of time, all this can take from two months to six months (depending on whether the company is large or not). The seller, more than anyone else, should be interested in discovering all possible problems in order to eliminate them and sell the company at the most favorable price.
The next step is to prepare an investment memorandum (for future buyers). In it, the owner sets out all the advantages of his business. The form of this document is free, and it should include the following information:
what exactly does the business offered for sale include: production (along with equipment), real estate, vehicles, etc.;
list of all companies, divisions, franchise enterprises;
partners, contractors;
a list of the work performed with a description of its features;
turnover volumes (monthly, annual);
financial documentation (that part of it that does not constitute a commercial secret);
information about employees (who is on staff, what education they have, level of professionalism, who is the most valuable of all, etc.);
development prospects.