How do I sell my business in Ireland?

How do I sell my business privately?

How to Sell a Small Business in 7 Steps

  1. Determine the value of your company. …
  2. Clean up your small business financials. …
  3. Prepare your exit strategy in advance. …
  4. Boost your sales. …
  5. Find a business broker. …
  6. Pre-qualify your buyers. …
  7. Get business contracts in order.

How do you sell an existing business?

Here are a few steps to help you navigate the sale process and make the most of your time:

  1. STEP 1: GET A PROFESSIONAL VALUATION. …
  2. STEP 2: ORGANIZE YOUR FINANCIALS. …
  3. STEP 3: INCREASE YOUR SALES. …
  4. STEP 4: TIME YOUR EXIT. …
  5. STEP 5: FIND A THIRD PARTY BUSINESS BROKER. …
  6. STEP 6: QUALIFY POTENTIAL BUYERS.

How do you value a business in Ireland?

Valuation methods

  1. Earnings multiples. Earnings multiples are commonly used to value businesses with an established, profitable history. …
  2. Discounted cashflow. …
  3. Entry cost. …
  4. Asset based. …
  5. Industry rules of thumb. …
  6. Growth potential. …
  7. External factors. …
  8. Intangible assets.

What documents do you need to sell a company?

Legal Documents Needed to Sell a Business

  • Non-Disclosure Confidentiality Agreement.
  • Personal Financial Statement Form for Buyer to Complete.
  • Offer-to-Purchase Agreement.
  • Note of Seller Financing.
  • Financial Statements for Current and Past Two to Three Years.
  • Statement of Seller’s Discretionary Earnings and Cash Flow.
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How much is my small business worth?

The formula is quite simple: business value equals assets minus liabilities. Your business assets include anything that has value that can be converted to cash, like real estate, equipment or inventory.

What is the best way to sell a small business?

Sell your business

  1. Make sure selling is the right decision.
  2. Decide whether to use professionals.
  3. Decide what’s for sale.
  4. Value your business.
  5. Find buyers for your business.
  6. Negotiate the sale.
  7. Prepare the contract.
  8. Take care of your employees.

What happens to cash in bank when a business is sold?

What happens to cash in a business transaction? … The business owner retains any and all cash or cash equivalents, such as bonds or any money market funds. Cash is deemed to include any petty cash on hand and funds in the company’s bank accounts.

What is the rule of thumb for valuing a business?

The most commonly used rule of thumb is simply a percentage of the annual sales, or better yet, the last 12 months of sales/revenues. … Another rule of thumb used in the Guide is a multiple of earnings. In small businesses, the multiple is used against what is termed Seller’s Discretionary Earnings (SDE).

What do I do after I sell my business?

Here are some ways to do this:

  1. Structure the transaction beneficially. …
  2. Seek capital gains treatment. …
  3. Take a loss on other investments. …
  4. Consider tax-free investments. …
  5. Remember charitable donations. …
  6. Consider gifts. …
  7. Max out your IRA or other retirement plan contributions. …
  8. Prepay your state and/or local taxes.
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How do I calculate what my company is worth?

Tally the value of assets.

Add up the value of everything the business owns, including all equipment and inventory. Subtract any debts or liabilities. The value of the business’s balance sheet is at least a starting point for determining the business’s worth.

How do I work out what my business is worth?

The price earnings ratio (P/E ratio) is the value of a business divided by its profits after tax. You can value a business by multiplying its profits by an appropriate P/E ratio (see below).