Business owners invest much time and effort into their businesses, and most arrive at hard decision to sell their businesses at some point in time. There are various reasons for selling a business, and although each circumstance is unique, most owners have similar incentives and concerns. It is an emotional and difficult process, and most advantageous deal is achieved by understanding steps and factors that determine best time to sell.

After decision to sell has been made, there are a number of preparatory measures that make your company more appealing to potential buyers, and they may take from two to twelve months to implement.

Financial Statements

You should obtain most recent profit and loss statement from your accountant. It is preferable to also get past two to three year's statements to show a historical trend and profile. The profit and loss statement shows both parties income earned and costs incurred in accounting period, difference of which is net profit.

You should address how you can strengthen or better document your company's financial health. Many owners minimize taxable income by using techniques to hide their earnings, however smart buyer will recognize such tactics. Buyers will normally recognize company's observable profits and will not pay for earnings that are not clearly documented. Since businesses are bought on a basis of multiples of earnings, investment of taxes paid for a year or two would be repaid in multiples of that amount in a sale.

You can increase buyer confidence by having your statements audited which will accelerate selling process and prevent delays in closing sale.

Physical Condition of Facility

The right professional advisor can help you find business that you are looking for. Many buyers when searching for a business for sale turn to their accountant and attorney for advice. Although your accountant or attorney may have experience dealing with various types of business, there are not professionals in helping you find a business for sale. You should consult your accountant and attorney before purchase, but don't rely on them to find you a business. Ask them to refer you to a business broker as you will need one for following reasons:

A broker will ask you lots of questions and know exactly what you're looking for. He or she may even be able to help you decide what kind of business might be best for you to purchase, given your resources, abilities, and interests. A business broker matches buyers and sellers. A broker helps to facilitate negotiating process. Since buying a business is at least as emotionally charged as buying a home, you will benefit greatly from a third party who can handle all aspects of transaction. A broker can speak more candidly to each party involved in transaction than they could manage on their own. A broker helps to untangle any red tape. An experienced broker will know most efficient way to acquire all necessary permits and licenses and will know how to locate financing and a reputable escrow company. This helps to eliminate many potential risks to you. Finding a good business broker is not an easy task. There are many people who call themselves brokers, but they are in fact real estate sales people who sell real estate as well as sell businesses in addition to their real estate activities. If you want specialist help, it is always best to look for a specialist business broker. Many are listed in Yellow Pages and others advertise businesses for sale in newspapers and on Internet. The key is to look for a business broker who has listed and sold businesses in industry or industries that you are interested in.

You need to look for following in your search for a business broker that is right for you: