Selling a business is like your first time selling a house, just because you’ve lived in it and made it a home doesn’t mean you know how to sell it.
In order to ensure the success of your business sale, there are several key financial features that need to be addressed.
“Selling a business is like your first time selling a house,” says MacPherson, National KPMG Enterprise Tax Leader and tax partner with KPMG in Calgary. She explains that just because you’ve lived in a house and made it into a home doesn’t mean you know how to look at it from a buyers’perspective. “Most business owners only sell their business once,” she says,“and that means that, while they’ve been really good at building the business, it doesn’t necessarily mean they know how to sell it.”
In her article, Ms. MacPherson outlines the importance of your financial statements and tax planning and how they can affect your business valuation and final business agreement. ‘As with selling your house, you want to do a major clean-up before throwing open the doors to potential buyers, making sure all your documents, leases and contracts are in order – and that they exist in the first place.’
Learn the common mistakes, realistic timeframes and cost-saving tips when preparing your business for sale.