Selling a business can be the right answer when owning is only causing more stress. However, a messy business cannot go on the market. This messiness could come from general housekeeping issues to messy business relations. The following four issues must be addressed before a business is sold.
Is the IRA knocking down your door?
This problem will cause any buyer to run the other direction. A business with several years of missing taxes is a liability to anyone involved. Hiring an experienced CPA or tax attorney is in the company’s best interest. Failing to file one year of taxes, while unlawful, is no reason to panic. Recurring failures are harmful to the health and future of any business.
Next to the IRA representative is the unsatisfied business partner. Unsettled disagreements between investors or partners are only detrimental to a business. Damages will impede progress and lead to costly litigation. An ongoing dispute can lead to a desperate sell at below market pricing.
Disgruntled employees are also negative to even the most successful business. The business owner is the authority in the situation that must put aside the differences or hire a professional transaction intermediary to help reach a solution. Once this has happened, a business can be successful on the market.
The internet is one of a company’s most useful tools. An outdated website is comparable to a useless storefront. A businesses website shows how up to date that business can be in a fast-paced 21st century. If the website is out of order, what else is? This question will deter buyers and customers alike.
The cleanliness of an office is the first appearance factor in any business transaction. A buyer could deduce messy finances from the dusty stack of files in the corner. How about the overflowing trashcan and unwashed bathroom? They could mean sloppy business practices. A serious business has a well-kept office.
Addressing these four issues will not be easy. However, the business that does is the business that sells faster. Look for help in The Tenney Group. With them, readying your business for sale will take no time at all.