When a buyer looks to acquire a business, it’s a big deal—both personally and financially. Often, it’s a once-in-a-lifetime opportunity. So, buyers want to feel confident and assured that everything is in good shape before moving forward. To help make this happen, sellers need to take proactive steps to present their business as not only attractive but also secure and low-risk. This means being thorough in your pre-diligence, addressing any perceived risks, and working with the right professionals to ensure the process goes smoothly.

Step 1: Tackle Due Diligence Upfront

Think like a buyer. Before you even list your business, consider what concerns a potential buyer might have. What would you want to know if you were in their shoes? Can you address any of those issues before putting the business on the market?

Buyers want transparency and peace of mind that there won’t be any surprises down the line. That’s where working with the experts at Transworld Business Advisors comes in—they’ll help you spot potential problems early and resolve them to avoid delays or complications. Some of the tasks you may need to handle include cleaning up financials (like separating personal expenses from business ones), adjusting your staff size, updating or selling off old equipment/assets, and getting inventory in order.

Step 2: Minimize Perceived Risks

The less risky a business looks, the more appealing it will be to buyers. Potential risks like relying too heavily on a few clients, having legal issues hanging over your head, or facing employee retention problems can scare buyers off. Before listing, talk to your Transworld broker about these concerns and work on ways to address them.

• Revenue Concentration: Relying on just a few clients can seem risky. If possible, try to diversify your client base to ease this concern.
• Employees: Buyers want to know the staff will stay, especially key employees or managers. Showing that you have a reliable team in place can give them confidence.
• Legal and Financial Liabilities: If there are any outstanding legal or financial issues, it’s best to resolve them before the sale. This will make the business more attractive and avoid roadblocks in the deal.

Step 3: Work with the Right Professionals

Having the right team in place is crucial when selling your business. While business brokers and M&A advisors are a must, it’s also a good idea to bring in accountants and legal experts early on. These professionals will not only help navigate the complexities of the sale but also help you craft an exit strategy that aligns with your goals while boosting the marketability of your business. Transworld Business Advisors can help you start building that team and focus on the areas that need attention before you list your business.