Selling a Business?
You would like to sell your business? Selling a small business is a complex venture that involves several considerations. You will for sure need an experienced broker, an accountant and perhaps a spanish lawyer as you proceed. We help you building a solid plan and make negotiations successful. We need to talk about the following, before we start looking for the right person to buy your business.
1. Reasons for the Sale
You’ve decided to sell your business. Why? That will be the first question a potential buyer will ask. Owners commonly sell their businesses for any of the following reasons: retirement, partnership disputes, illness and death, becoming overworked, boredom.
Some owners consider selling the business when it is not profitable, but this can make it harder to attract buyers. Consider the business’s ability to sell, its readiness and your timing. There are many attributes that can make your business appear more attractive, including: increasing profits, consistent income figures, a strong customer base, a major contract that spans several years and many more.
2. Timing of the Sale
Prepare for the sale as early as possible, preferably a year or two ahead of time. The preparation will help you to improve your financial records, business structure and customer base to make the business more profitable. These improvements will also ease the transition for the buyer and keep the business running smoothly. The best time to sell a business on Mallorca, is by the end of the season. From October to March, we realise most of the business transfers on the island.
3. Business Valuation
Next, you’ll want to determine the worth of your business to make sure you don’t price it too high or too low. We help you to get a fair market valuation. (Also see our article “Business Valuation“.)
4. Using Business Brokers Mallorca
On the one hand, selling the business yourself allows you to save money and avoid paying a broker’s commission. On the other hand, we can help free up time for you to keep the business up and running, keep the sale quiet and get the highest price. Discuss expectations and advertisements with us and maintain constant communication. We secure discretion throughout the entire process.
5. Preparing Documents
Gather your financial statements and tax returns dating back three to four years and review them with your accountant. In addition, develop a list of equipment that’s being sold with the business. Also, create a list of contacts related to sales transactions and supplies, and dig up any relevant paperwork such as your current lease. Create copies of these documents to distribute to financially qualified potential buyers.
Your information packet should also provide a summary describing how the business is conducted and/or an up-to-date operating manual. You’ll also want to make sure the business is presentable. Any areas of the business or equipment that are broken or run down should be fixed or replaced prior to the sale – before the first viewing with a potential buyer.
6. Finding a Buyer
We already sold complicated businesses within 14 days. But you never know. A business sale may take between six months and two years. Finding the right buyer can be a challenge. We will find potential buyers through our clients database and our online advertising activities. We make all necessary contracts and will moderate the entire transfer from the seller to the buyer, including all the assets, rights, licenses and know-how. Only when everything is sorted out properly and completely, our work is done.
