Steps to take if you are looking to sell your business

The reasons for selling a business are diverse. The most common include market timing, a lack of succession, or the business owner looking to sell a portion of the company to a strategic partner. No matter your reason, if you’re contemplating selling your business, you should get your finances in order. Having your business books up to date is extremely important when running a business, and it’s equally or even more important when selling it. What documents should I have? As Gian Piovanetti, a private equity area manager at Banco Popular de Puerto Rico explains, not all businesses have the budget to have a finance director; however, it’s recommended to hire the services of a certified public accountant or a financial consulting company. This consultant will make sure that the following documents are up to date:

• Income and expense records, ideally digitized to generate financial reports.
• Tax filings to the Department of Treasury, the municipalities, CRIM, and the Department of State.
• Tax returns and use tax filings in case you charge IVU.

How much am I going to sell for? According to Piovanetti, the market is currently fertile for selling, nevertheless is still essential to have the business appraised by an expert company to determine the selling price. In addition to the market situation and the business revenues, the selling price will depend on the value of assets such as machinery, land, property, patents, customer portfolio, and applications, or software, you have developed. Your brand recognition is also valuable and should be included in the appraisal. To whom am I going to sell? To find a buyer, the bank has investors' portfolios inside and outside Puerto Rico who may be interested in your business. You’ll need an investment banker’s assistance to reach them. The banker will present an anonymous teaser of your business and gauge their interest. Suppliers, customers, and competitors are also potential buyers. Confidentiality is crucial Finally, Piovanetti advises that the sales process should take place under the utmost confidentiality. The last thing you want is to affect the transaction or create uncertainty. Both you and your advisors should be discrete until you close the deal. If you have already decided to sell, organize your finances with an expert and contact Popular One's to guide you through the process.   This article is for informational purposes only and does not constitute an endorsement or guarantee of accuracy or applicability for any particular purpose. Neither Popular nor any of its affiliates, subsidiaries, or related companies is or will be responsible for any special, direct, or indirect harm stemming from the information contained in this article. Should you require further information or guidance on the subject of this article, you should always seek the advice of the competent professional of your choice.