Opening and building a small business takes time, dedication, hard work, and patience. Ideally, your efforts will pay off, and your endeavor will grow and become successful. Although you may have expected to maintain your ownership, circumstances can arise that may lead you to consider selling your small business. As with any major business decision, timing is critical. So, when is the right time to sell a Florida small business?
Reasons to Sell Your Florida Business
When a small business is contemplating a sale, the timing usually depends on the reason the owner wants to move on. A small business owner may want or need to sell their enterprise for various reasons, such as:
- Retirement
- Major Illness or Injury
- Divorce or other Family Issues
- Low Profit Margins
- New Business Opportunities
- Offer by a Competitor
When the decision to sell is involuntary, such as when there is an illness, injury, divorce, or other family issues, a small business owner may have less flexibility in terms of the timeframe. Further, under these circumstances, details such as the price, inventory transfer, and other factors may also be less negotiable.
By contrast, when a sale is voluntary, there may be more time to prepare. For instance, a small business owner who plans on retiring or moving on to another venture can take concerted steps to ready themselves and their business for a sale.
Even when there are not emergent circumstances or an anticipated sale, an owner may also be presented with an opportunity that requires them to sell their existing enterprise. For example, this situation may arise when a new business venture comes to light or when a competitor makes a compelling offer to acquire the enterprise.
In all of these situations, it would be highly beneficial for an owner to work with an experienced business attorney. A Small business lawyer can help the owner evaluate the reasons for the sale, identify options, and plan for the future.
Getting Your Small Business in Order
When you know a sale is on the horizon, it’s a good idea to evaluate your current status. This should involve identifying matters such as your accounts payable, liabilities, and obligations. In addition, if you have an existing workforce, there may be payroll and benefit expenses to consider. In addition, you will want to look at any applicable real estate leases and contracts. Your Florida business lawyer can help you determine the areas to review when contemplating a sale. Further, your counsel can assist you in getting matters in order for the sale.
Negotiating the Terms of the Sale
Once you and your Florida business attorney have assessed and readied your enterprise for sale, you will need to consider the terms of your agreement. Your Florida business lawyer can assist you with drafting, negotiating, and reviewing your business sale contract and other important agreements that may be associated with the transaction.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Legal Center assists clients like you with commercial leasing, 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.