If you own a business, the thought has crossed your mind about selling it at some point. Mergers and business acquisitions can involve a lot of moving parts such as legal, human resources, finances, and intellectual property.

If you are thinking of selling your business, here are three things to consider:

1. Price Is Negotiable

Too often, business owners believe their business is worth a certain price and then stick to that price. This is a bit unrealistic, especially for privately held companies since valuation benchmarks are not as clear as they are for publicly traded companies. Having a company valuation is definitely the starting point when it comes to the process of selling your company.

Other factors that may affect the price include:

• Whether the buyer is a public or privately owned firm.
• The historical trend of your financials.
• Your company’s projected growth.
• The experience of your management and executive team.
• The prospects for future opportunities for your company.
• The risk associated with your companies earnings.

2. Business Acquisition Can Take A Long Time

On average, most business acquisition transactions can take between 4 and 6 months, and in some cases, much longer than that. The time frame will ultimately depend on how quickly the buyer does their due diligence in order to complete the transaction.

Having good communication between the buyer and the seller can greatly reduce the time it takes to complete this process, so make sure the CEO and CFO have access to the appropriate people on the other side in order to work out valuations and terms.

3. Ready Your Financial Statements

Buyers want to know what they are buying, which means that every financial document they request will be thoroughly vetted. Having clean financials and accurate records can help this process go smoothly and reduce the myriad questions that will surely come once your financials are reviewed.

Before the opportunity to sell presents itself, make sure that your books are in order and you have an idea of the financial statements the buyer will want to see. The quicker you can package these documents in a clear and organized way, the easier it will be for the buyer to evaluate your company and determine their interest in proceeding with the acquisition.

As you can see, there are several moving parts to selling a business. Understanding these issues will facilitate the acquisition process and increase your chances of selling your business successfully.