You set up a business and put in efforts to make it a profitable one. However, there can be several reasons like not able to handle such a large business, willing to invest in a new business etc. that you might think of selling it. Selling a business is a complex process. The first thing that you need to do is to determine the value of business. Then you will have to look for a buyer who is capable enough to take over your business. Here are some tips about business takeover Hong Kong that you should know to make the best deal.
Here are some things that you can follow when putting your business for sale.
Find the best time for sale
Before selling your business, you should set it in a good position. Improve your business turn over and research the market condition. In the demanding conditions, you will get more value for your business.
Hire a Broker
A broker works as a bridge between the dealers and buyers. Many brokers function out of a specific area, but in this digital era, buyers are limitless, they can be from anywhere. When it comes to their fees, it is 10 percent of the sale. Well, for big deals, this fee might increase more than 10 percent.
Requirement of documents
During the process, you will need from the buyer an NDA (nondisclosure agreement), their financial statements and others.
Do financial evaluation
Brokers can also professionally evaluate your business. Your broker will efficiently compare your revenue and cash flow whereas a qualified appraiser will accumulate the most precise information but a broker will also figure out the company’s worth.
Keep away from deal-breakers
Financing is forever a deal-breaker. Most of the sellers wish to get their money. The seller should offer training and support to make a good transition with the purchaser, who will then feel positive that this is a constant business and it will continue.