Donna Genie walks through what PYOP studio owners need before selling. Gather three years of tax returns, three years of financial statements, and current year-to-date numbers. Most sellers use brokers to screen buyers and avoid wasting time on unqualified prospects.
If you're thinking of selling your business, now is the time to prepare. You can never be too early in getting your business positioned to sell well. So what will you need to have to get ready to put your business on the market? Well, whether you're selling it yourself or using a broker, you will guaranteed need three different items. First, your last three years of business tax returns. If you file as a Schedule C as a sole proprietor, you'll also need your personal tax returns for the past three years. Next, you'll need financial statements financial statements from the past three full years. And third, you'll need your financial statements from the current year to date. So it's important that that information is structured properly and professionally prepared or it looks like it should. Look, you don't want to scare off a potential buyer because they feel like you don't have good records. That's the fastest way to decrease your sales price. You'll need to decide on a value for your business. You want to qualify potential buyers and this is why many people use brokers. There are a lot of tire kickers out there who don't have the means to buy your business but still want to talk to you about it.
