Much like starting a business, selling one can be stressful and time consuming. Many characteristics about your company must go into consideration when putting it on the market, and timing is equally as important.
For instance, the health of your business and your own health can greatly affect the process. Whatever your reason for selling, there are important reminders to consider as you prepare to part with your business.
In this post, we will discuss selling your business.
1. Have a team of professionals
Assembling a team of professionals during this process is crucial. Having an experienced business lawyer can help you understand the legal implications of selling your business, while a business broker will find potential buyers. Likewise, you’ll need a professional valuator to determine your company’s worth.
2. Determine your company’s worth
Properly valuating your company for a sale is another vital aspect of the process. The valuator will look at the company’s assets, such as equipment, trademarks or inventory, and price them individually to determine the whole value. Having a professional valuator will place confidence in buyers’ minds as they consider your business.
3. Prepare paperwork
Buyers will want to see all paperwork for the business. This includes taxes, finances—such as profits and losses—or contracts. Having this information prepared beforehand will again place confidence in the buyer about your business’s health.
4. Asset sale v. share sale
You’ll also want to decide on how you want to sell. You have the option of having an asset sale or a share sale, dependent upon whether your business is incorporated or not.
If your company is unincorporated, an asset sale is your only option. If your company is incorporated, however, you have the option of either an asset or share sale. Discuss each sale with an experienced professional to determine the best fit.
5. Keep the business clean
Like a house, you will want to keep your business clean during the sale process. A dirty office could be unappealing to potential buyers, which could drag out the selling process even longer and cause more stress.
Selling your business can be a bittersweet departure or a burden lifted from your shoulders. Whatever the case, it is important to be prepared throughout the entire process and have experienced professionals with you every step of the way.