DIY Business Sale: Tips for Founders
Thinking about selling your business on your own? It’s doable with some good prep. While many people use an advisor, you can manage it yourself too. Start by getting a confidentiality agreement (NDA) to keep your business info safe when talking to potential buyers. Figure out what your business is worth by comparing it to similar businesses. Make some materials that really show off what’s great about your business. Also, put together a list of potential buyers and keep things organized to make sure you get the best price and deal terms.
Key Points to Consider When Selling Your Business Yourself:
Non-Disclosure Agreement (NDA) or Confidentiality Agreement (CA): Make sure anyone interested in buying your business signs an NDA or CA before you share any sensitive details. This keeps your business secrets safe.
Business Valuation: Learn about common ways to value businesses like yours, using things like EBITDA, revenue, or earnings. You don't need an official valuation, but it's good to know what your business could be worth.
Showcasing Your Business: Put together some materials that show how well your business is doing, who your key workers are, and where it could grow. This helps buyers see why your business is special.
Buyer Universe: Figure out who might want to buy your business, like investment firms, companies in your industry, or even competitors. Contact them all at once to stir up interest.
Driving Value: Keep everything organized and competitive among potential buyers. This will help you get the best price and terms for your business, making sure it's set up well for the future.
Selling your business by yourself can work out great if you're ready for it. Make sure to keep things safe with an NDA, know what your business could be worth, show off the best parts, and talk to lots of potential buyers. With these steps, you can manage the sale well and get a better outcome.
