If you are a business owner who is eyeing retirement, interested in pursuing other business opportunities, or you simply want to cash out on your business, it is in your best interest to properly prepare your business for an exit, so it is attractive to prospective buyers at the maximum value. There is no doubt that selling a business in Los Angeles or any other city or state is a major decision that necessitates strategic planning to ensure a smooth transaction.
Below are a series of recommended steps you should consider taking to get your business ready for the open market.
Conduct a Valuation of Your Business
Conducting a thorough valuation of your business is critically important since it can help clarify the worth of your company. Understanding your company’s value will pay dividends when negotiating with prospective buyers and can help you gauge whether an offer is actually worth considering. In order to conduct a proper valuation, you need to evaluate financial statements, assets, and liabilities.
One of the key aspects of a business valuation is having accurate financial statements and other documentation. Make sure your financial records, such as income statements, balance sheets, and tax returns, are accessible and organized in a manner that makes it easy for a prospective buyer to conduct a due diligence review.
Make Enhancements to Operational Efficiency
To strengthen your company’s position on the open market, conduct an evaluation of your business operations. Specifically, identify any areas where you could potentially increase efficiency and productivity. If there are ways that you can streamline processes, cut down on expenses, and ensure your business is operating at optimal capacity, it can make the company even more attractive to potential buyers. The easier it is for the company to operate without the owner having to work on the business on a day-to-day basis, the more valuable the company will be in the eyes of prospective buyers.
Address Any Legal Issues
Before selling your business, consider engaging with a reputable business lawyer in Los Angeles to help resolve any outstanding legal issues or disputes. This is important because legal issues can cause a potential deal to fall apart when a prospective buyer is conducting due diligence. A business lawyer in Los Angeles can also assist with reviewing all contracts, leases, intellectual property rights, and employment agreements.
Assess Transferable Contracts
Another important step in preparing your business to be sold is reviewing any active contracts with vendors and managed service providers. This review should assess whether those contracts are transferable to a new owner. Having readily transferable vendor contracts in place can make your business even more appealing to prospective buyers.
Have Questions? Contact an Experienced Business Lawyer in Los Angeles
If you are interested in selling your business in Los Angeles, then contact the Hakim Law Group. We are a corporate law firm geared toward helping entrepreneurs tackle complex legal and regulatory issues. Our Los Angeles business law firm was founded on the premise that experience matters. We are laser focused on providing the highest levels of representation in addressing the legal and business challenges facing our clients today, tomorrow, and in the future.
Our team of skilled and highly reputable business attorneys in Los Angeles have worked at top-tier international law firms and served as general counsel to major companies. This high level of diverse legal and business experience is paramount to our boutique approach.
For additional information or to schedule an appointment, please contact The Hakim Law Group at 310-993-2203 or visit www.HakimLawGroup.com to learn more.
