Business owners sometimes decide it’s time to move on. But first, they need to consider how to separate from the company they have put so much work into. If you are selling your business, you will have many decisions ahead. A recent article in Entrepreneur magazine suggests that you consider the following things while working on your sale.
Understanding the Process of Selling Your Business
Once you make the decision to sell, it’s best to start by figuring out how much your business is worth. This step gives you an idea of how much you can ask and can help you avoid dealing with lowball offers.
Next, many sellers contact a broker or start approaching potential buyers on their own. Serious buyers will spend time conducting due diligence to learn more about your company. Once negotiations are over, the parties prepare and execute contracts and other paperwork. Here, it’s critical to get legal advice if you have not already done so.
Don’t Do It Alone
Even selling a small business can be a big deal. As a business owner, you’ve had to wear many hats, but this is the time to ask for help.
A broker, seller’s agent, or other representatives can help you get started and locate the right potential buyers. You can use their experience to avoid some of the pitfalls along the way.
You also might need a business-valuation expert to determine your company’s value. An experienced business lawyer can take care of legal details, including compliance. Finally, a CPA can provide advice on the potential tax implications associated with your transaction.
Get a Proper Valuation of Your Business [
We have already mentioned it but can’t emphasize it enough – you need to know how much your business is worth. It’s best not to try to come up with an estimate yourself.
Prospective buyers typically are not impressed with haphazard estimates. Just as you want to get top dollar when selling your business, buyers want to make sure they are getting their money’s worth.
Be ready to show some or all of the following information:
- Financial statements,
- Details of any company-owned intellectual property assets,
- Your company’s customer base,
- Market sectors involved, and
- Current management teams.
When selling your business, try to have all this information ready to go as soon as possible to avoid losing any interested buyers.
Maintain Transparency While Protecting Confidentiality
You usually have to release sensitive information about your company, but that does not mean you have to forego security. Talk to your agent or business attorney about using a non-disclosure agreement.
Selling Your Business Is a Complicated Thing
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.