No body wants to sell a business that he has nurtured with his time, money and hard work. However, many times, business owners are forced to sell their business due to certain unavoidable circumstances of financial issues. The even worse part is that the process of selling a business can sometimes be very difficult. The first difficulty you come across before putting your business for sale is evaluation of its fair value.
There is so much preparation to do before putting a business for sale that it is often hard to decide the starting point. Preparing a list of tangible assets and classifying the ones that can be included in the sale can be a good place to start.
Among the tangible assets, real estate being the most important physical property usually needs the maximum attention. In addition to real estate, other major tangible assets, include vehicles, office equipments, operating equipments, and inventories. All of these assets may or may not exist in every business, but making a clear list of assets for sale will make things transparent between you and the buyer. Buyer will also get a clear idea about the things he is getting in return of his investment.
Real estate, office building, and land are usually the most important parts of any business. The location of business plays a major role in deciding the value of any business and therefore you can choose to treat real estate as a part of the business or can sell it as a completely independent entity. You may also choose to sell only the business while keeping the office premises under your control. In such cases, the buyer has the option to move the business to a new location.
Having all the office equipments in a proper working condition means the business needs no immediate investments in terms of infrastructure. This brings in a positive response for your business. Equipments that need upgrades and maintenance should be taken care of before putting your business for sale. If everything looks nice at the first appearance, it will definitely add value to your business.
Calculating the value of inventories is also an inseparable part of any business. It is advisable to divide the inventories on the basis of their current state – raw materials, half-made products, and finished products. It is better to keep away goods that are damaged or expired.
Sorting out the tangible assets before you put your business for sale also helps you avoid any sort of discrepancies in the future. It will also help you identify what remains with you after the selling process is over. At the same time, it gives the buyer an idea about what he is getting in return of his hard-earned money.