Unless you plan on handing your business down to a family member when you want to retire, you'll need to come up with a good exit strategy. This will ensure you sell your business for the highest possible price. The best time to start planning your exit strategy is right now, since much of the preparation can take years to get right.
One of the key people who will help you throughout the entire process is an accountant. Remember, accountants don't just handle your taxes and overview your balance—they can also perform many other financial tasks that will be invaluable. Here are just 3 ways an accountant can help you get your business ready to sell one day.
Clear and Thorough Records
When you're selling your business, one of the first and most important things any buyer will want to know is how you've been performing financially. To show them that, you'll need impeccable financial records. Having an accountant on your team will ensure that your bookkeeping is always clear and thorough. An accountant will know exactly what to document as part of your exit strategy. That way, when a buyer asks, you'll be able to hand over several years of financial records to prove your solid track record with no hassle.
Bigger and Better Valuation
Your current sales figures don't have to be the be-all and end-all of your business's valuation. You can push your valuation up a lot by identifying your company's strengths and growing them to be even better. Likewise, finding your business's setbacks and fixing them will ensure your company sells for the highest possible price when you want to retire. An accountant can help with these by providing and analysing the financial figures that show you where you're going right and where you're going wrong. Many accountants actually specialise in valuing businesses, helping you work out your valuation and identify key areas of improvement.
Networking With Brokers
Never underestimate the power of networking. When it comes to selling your business, you'll need to work with a variety of professionals—for example, a business broker. Of course, your choice of broker could make or break your sale. An accountant with years of experience in the finance game will have dealt with numerous business sales in their time. This means they'll have plenty of contacts and references for good brokers, helping you find the person who will get you the most money out of your final deal.