Hiruy Amanuel Shares Tips for Selling a Business

It can feel overwhelming to sell a business. Not only is there likely personal attachment and emotions involved in the sale, but the process is rather complex too. Hiruy Amanuel wants to help business owners navigate this undertaking as well as avoid its pitfalls. Below are some of his tips to succeed at selling a business.

Get Expert Advice

Anytime you aren’t an expert on something, it’s in your best interest to get the experts involved. You’ll want reliable legal and financial professionals assisting you through the sales process to ensure you aren’t unprepared. These experts also come with an additional advantage — their neutrality regarding the sale, something you might struggle with initially

Hire a Business Broker

In addition to having financial and legal experts, you’ll always want to look into bringing in a business broker. They have dependable networks of buyers that can help increase your options and find you the best buyer possible. A professional business broker can also help you with the next tip: setting a realistic asking price.

Determine a Realistic Price

Many things can influence the price of a business, including:

● Reputation

● Client relationships

● Profits

● Market share

● Personal time investment

A prospective buyer will consider all of this, so it’s essential to put yourself in their position and compute a reasonable asking price. It’s not uncommon for entrepreneurs to over-value their startup because they know how much blood, sweat, and tears they poured into it, but a buyer won’t see things the same way. Keep pricing objective and realistic to encourage more potential buyers.

Organize Your Paperwork

While you likely have all of your paperwork stored somewhere, it’s a good idea to get it organized long before the business goes on the market. Part of selling a business is providing evidence of that business’s financial success, which comes in many forms. Potential buyers may ask to see anything from cash flow reports to previous tax records to projected financials. If you’re not prepared with what they asked for, they may walk away.

Get Offers in Writing

This advice may seem simple enough, but Hiruy Amanuel cannot emphasize it enough. Any legitimate offer must be written down and include important details. That way, as more offers hopefully come in, you can make accurate comparisons and determine which choice is the best for your needs. Plus, anyone who isn’t willing to make an offer in writing is likely hiding something and wasting your valuable time.

Wait Patiently to Announce

You may feel proud, excited, or anxious to sell your business, but you don’t want to let the cat out of the bag too quickly. If customers hear about a sale before it happens, it could send them into an unwarranted panic. Instead, wait patiently for the sale to finalize before making any official or unofficial announcements. Doing so will save you time and energy better spent on other aspects of the sale.

About Hiruy Amanuel

Hiruy Amanuel believes groundbreaking technologies will develop rapidly throughout the Horn of Africa as access to quality education and technology increases. As an expert on technology and a devoted philanthropist, he has invested in East Africa’s numerous educational and technological initiatives.