Your decision to sell your business can sometimes be hampered by questions about how to proceed. The most basic question to be answered is whether to sell now, sell later, or liquidate.
The “sell now” question is answered by looking at your business as a buyer would: Can a buyer earn a living from the business, make any required debt service payments, get a return on his/her down payment, and be able to reinvest in the business? Do you have procedures and record keeping systems in place that give a buyer confidence in the business?
If the answer is yes, “sell now” is a viable choice.
If the answer is no, there are two alternatives: Spend time, effort, and possibly money to improve the business’ cash flow and systems so that in the future you can answer yes to the “sell now” question. If you are unable or unwilling to improve the business’ cash flow and/or systems to make it attractive to a buyer and you are certain you want to exit the business, liquidation of the business’s assets may be the only option.
Even if selling now is a feasible choice, with a little time and effort, you may be able to make changes in the business to enhance its marketability – and its potential selling price. A business broker can be a valuable asset in deciding how to proceed