The sale of Bay Area businesses amid the COVID-19 crisis can feel daunting. Financial experts warn that business owners who don’t adequately prepare are more likely to miss out on profits. With that in mind, let’s look at 4 effective steps to make selling your business during COVID-19 a success.
1. Get Your Business In Order
Let’s face it, no one wants to buy a business that will cost extra time and money to put in order. So even before listing your business, plan on getting organized.
Start with the paperwork. Make sure you have business financial records, employee job descriptions, and key performance indicators. Then take a closer look at your office space, production floor, or warehouse, and work toward appropriate steps to improve its appeal to potential buyers.
2. Prepare a Realistic Growth Plan
Most Bay Area businesses are going through a rough patch right now and buyers know it too. If you hope to increase the chances of selling your business at the right price, it’s important to demonstrate that there’s room for growth. Studies indicate that Bay Area businesses that offer a realistic picture of growth potential, along with a clear marketing plan, are more likely to sell than those that overlook this step.
3. Have Strong Financial Statements
Perhaps the worst mistake you can make when selling Bay Area businesses during COVID-19, is to present poorly maintained books to prospective buyers. It’s wise to keep detailed financial records. Also, keep in mind that it’s a good practice to provide potential buyers with financial statements that were reviewed by an independent CPA firm.
4. Find The Right Buyer
Selling your Bay Area business is a major decision. You want to make sure you find the right buyer. Some things to consider may include their industry experience, their motivation for buying, and of course the offer itself.
Escrow for Bay Area Businesses
While selling your Bay Area business during COVID-19 may seem challenging, it’s not impossible. We hope these tips help you get started. If you need escrow services for your business transfer, contact us at (925) 831-9099. We take pride in providing personalized customer service.