How to sell your company faster?

Blog / Financial Literacy

How to sell your company faster?

It’s a question that many entrepreneurs ask when they decide to put their business up for sale: “How can I make the process faster?” The answer, however, is not simple, as it depends on several factors, such as the type of company, the sector of activity, the value, the profile of buyers, the market situation, among others.

In general, we can say that the average time to sell a company is 6 to 18 months, but this period can vary greatly depending on the context. Some businesses can be sold in a matter of weeks, while others can take years to find a suitable buyer.

To have a faster sales process, it is important that the entrepreneur follows some steps, such as:

 – Prepare the company for sale:

> Pay off non-operating accounts and clear the operation of non-operating expenses or income, so that the financial statements reflect the company’s productive activity.

 – Prepare the company so that it is an asset and not a job:

> It is important that the company, before being sold, does not present any irreplaceable human resources.

 – Rate the company:

> Get an assessment from an independent company consultant.

 – Marketing documents:

> Create a confidential Teaser that captures the attention of interested buyers.

> Prepare a memorandum of confidential information, which presents the company in a clear and objective way to potential buyers, highlighting its competitive advantages and opportunities for improvement.

 – Promote the opportunity:

> Publicize the transaction opportunity through appropriate channels. If the transactions are smaller (less than €10M), it is appropriate to carry out a listingthrough online marketplaces and publicity within the investor network.

> For higher value transactions, a listing does not make much sense, the most appropriate option is to start a negotiation without a defined price and capture, through an auction process for example, the maximum possible value, knowing in advance the market value of the company.

 – Enlist the help of qualified professionals:

> As consultants, lawyers and accountants, who can guide the entrepreneur during all stages of the sales process, from preparation to negotiation and conclusion of the contract.

 – Be flexible:

> Dialogue with interested parties and seek to understand their needs and expectations, and offer favorable conditions for the business, such as phased payments, earn-outs, etc.

By following these tips, it is possible to reduce the time it takes to sell your company and increase the chances of finding a buyer who will value your business and continue your project.

At Valuingtools you will find help to evaluate, prepare and negotiate the sale of your company quickly, safely and efficiently.

Carry out a free simulation of your business now to find out how much your company is worth: