Selling your business? There are questions to answer

It's happened: The idea that has been popping up in the back of your mind has moved to the front. You're going to sell your business.

Now. Or at least this year.

But those who sell businesses for folks like you and me warn that the process is not necessarily quick or easy - even if your best-ever friend has made an offer that you know is going to work. Paul Heinze, a business transaction specialist at Barrington Hills-based Goldberg Heinze Business Advisors, says there almost inevitably is work to be done before a business is ready to sell.

"It typically takes two to three years to get a business - and its balance sheet - ready to sell," Heinze says. You'll need, for example:

• An attorney experienced in business sale transactions.

• An accountant with the same type of experience.

• A business broker who (1) is licensed with the Illinois Secretary of State and (2) has helped other business owners sell (or purchase) their businesses. Preferably, Heinze adds, that broker will have buy-sell experience in your industry.

How do you find those people without letting the marketplace know too early that you're planning to sell? Heinze suggests asking the director of the trade association or professional society you belong to for recommendations.

The Illinois State Bar Association and the Illinois CPA Society are good options as well, he says.

At the same time, Heinze says you should be ready to provide information to and answer questions for business brokers you interview.

• A favorite Heinze question: What keeps you up at night?

• Other questions typically include: Is your business partner on board with the sale idea? Your spouse? How will Uncle Fred react to news of a sale?

• Is your business' tech capability a plus or a minus?

• Do you own the building where your business lives? Is equipment up to date? Can the equipment (and therefore the business) be moved if that's what a prospective buyer wants?

• Why are you selling now?

• What do you think your business is worth? Like most good brokers, Heinze and partner Joel Goldberg will order up a professional appraisal to help establish a realistic price, but your expectations matter.

Even at the first meeting with a broker, you should be prepared to share tax returns, an income statement and a balance sheet. In addition, part of your process should be some personal financial planning, especially if proceeds from the sale will be your retirement kitty:

• How much money will you (and a spouse or partner) need to live on?

• What are your retirement goals? World travel? A move to a warmer climate - or to where your children and grandchildren currently live? Are you ready for a senior living community? Are there health issues that might influence your decisions?

Even with 11 months left, you might not sell this year. You can begin the process, however.

© 2019 Kendall Communications Inc. Write Jim Kendall at Jim@kendallcom.com. Read Jim's Business Owners' Blog at www.kendallcom.com. Follow Jim on LinkedIn and Twitter.