There may come a time in your business career when you need extra money, when you want to cut back on work or when you need to refocus your business activities. In these instances the prospect of selling your business may seem like the only option that you have. However, selling your entire business may not be your only option. You could always sell just a portion of your business to achieve the goals that you have or to fix the problems that you are facing.
Step #1 – Identify Aspects of Your Business That You Can Sell
The first step is to identify various components of your business that you can sell to either raise money or to reduce your workload. For example, you can sell a specific group of client accounts or contracts, you can sell your accounts receivable or you can sell a division or product line to another company.
Step #2 – Determine the Value of Each Expendable Asset
The next step is to determine the value of each asset that you identified in the first step. The valuation can be as simple as the dollar value of the remaining portion of the contract or account balance, or it can be more complicated. If you need to sell an asset quickly you will need to first identify its fair market value and then determine if you are willing to sell the asset at a discount to encourage a quick sell.
Step #3 – Prioritize Your Assets
Step three is to prioritize the assets in order that you would prefer the sales to go. This means listing the assets you are least interested in keeping at the top of your list and the assets that you wouldn’t mind keeping, or that you would prefer to keep, at the bottom of the list. This will focus your sales tactics, while still giving you options.
Step #4 – Work with a Business Broker or Attorney to Find Buyers
The next step is to find people interested in buying your assets. You can work with a business attorney who handles business sales or a business broker to find buyers. You can provide them with a complete list of assets that you have to sell or you can give them an abbreviated list to test the waters with.
Step #5 – Other Options
Another option that you have for selling business assets is to place advertisements in trade publications. You will not want to give out too many details about the sales to protect the sensitive data that your assets may contain. However, you can include information like the type of asset that you are selling, its asking price and the discount rate you are willing to accept.