Prepare and plan well in advance of the actual sale.

Once you make the decision to sell your business, everyone involved should know what’s going to happen and have an approximate timetable for when changes will occur. That way, you’ll be able to keep your focus on your business’s day-to-day operations which will help maintain its value. 



Decide what you’ll do next.

Many family business owners feel as though their business is an important part of their identity. That’s why you should plan the next stage of your life before you actually sell your business. You’ll need to have a plan in place for after it sells to help your mental well-being and to maintain your sense of purpose. Selling your business is one of the most important life decisions you will make.

Organize your finances.

Anyone who’s interested in buying your business will expect to have access to the last three to five years of financial statements, which should be in good order. You should also be prepared to discuss them in detail and to easily answer any questions a prospective buyer may have.

Determine what your business is worth and what your asking price will be.

A business valuator or experienced business broker can help calculate how much your business is worth. As it’s not an exact science, the valuator’s experience and knowledge - combined with various calculations - can help you determine a realistic asking price. The valuator will consider your business assets, which can be tangible (like real estate, equipment, and inventory) or intangible (like client lists and contracts). Several different methods of business valuation can be used to come up with an asking price, including one that’s based on the fair market value of your tangible assets, and one that is based on your earnings.

Identify any non-negotiables you may have - but be prepared to be flexible.

Selling a family business is often an emotional process as you will feel a certain closeness to the company and your customers, as compared to other business owners that may not be as involved in the day-to-day operations of their business. Your business may also play a special role in the community. As such, you may have some non-negotiables you’d like to include in the sale of your buisness. For example, you may want the current workforce to be retained, or you may want the company to remain in the area. Just be aware that you may need to be flexible during the business sale process and may have to compromise on some of these points.

If you’d like to sell your family business in Winnipeg, Manitoba, or beyond, contact us at OConnor Business Brokers & Consultants to learn more and to receive a free business consultation.