Questions To Ask When Selling A Business
Selling a business is a difficult process because it requires a lot of process including preparation to valuation to finally closing the deal. Here are some of the frequently asked questions during the sale of a business:
- What do I need to do before finding a buyer? Preparation is the key. You’ll need to eliminate as much debt as you possibly can, gather all of your important financial documents for potential buyers to analyze, and discover any potential weaknesses.
- How long does selling a business take? On average, businesses take at least 6-9 months to sell, starting from the time you actively start looking for a buyer. To be safe, a rule of thumb is that you can assume a year from the start of the process to the completed sale of your business.
- How much is my business worth? The best way to determine your business’ value is to use the method of multiplying your seller’s discretionary earnings (SDE) by your industry multiplier. These industry multipliers typically range from 2-5x or more and are dependent on the specific industry you operate within.