Selling your business is often times a complicated process. It requires preparing your business to sell from the moment you decide to launch. Selling your business could even be more complicated than selling your house. There are documents to prepare and actions to take to make your business as attractive as possible to potential buyers. Let us review this in more depth.
1. PREPARE YOUR IMPORTANT BUSINESS DOCUMENTS
Probably, the first step in your preparation to sell your business is to put together the necessary documents for potential buyers to review and for you to see if your business has the potential to be sold at a price you desire.
These are some of the documents you need to prepare:
2. PREPARE BY RECASTING YOUR BUSINESS: SOME LAWFUL ADJUSTING OF YOUR STATEMENTS FOR TRUE VALUATION
Many businesses would legally take advantage of many business deductions and credits to show lesser taxes and take home more money. However, when you decide to sell your business you might want to show your business is even more profitable. For example, you might have put your family members on your payroll, paid yourself some perks and taken advantage of some of the profits for capital improvement. You have made the business deductions and credits all legally. Now, you would want to put some of that money for the new year back into your business to demonstrate the true value of business. You might have to pay more taxes, but your business is worth more. This process is usually legal and an accepted business procedure called recasting.
3. PREPARE YOUR CONFIDENTIAL FINANCIAL MEMORANDUM
Selling your business is certainly more than just preparing some preliminary documents including your tax returns and paying your back taxes. The real process involves preparing a confidential financial memo for potential buyers to educate themselves about your business. Some of the details you might want to include in such confidential memo are as follows:
_ DORON EGHBALI_is a Partner at the Beverly Hills Offices of Law Advocate Group, LLP. He Primarily Practices Business , Rea l Estate and Enter tainment Law. Doron Can Be Reached at: 310-651-3065. For More Information, Please, Visit: HERE.