Contemplating Selling Your Business
"5 Things to Consider When Contemplating Selling Your Business"
Everything in life has a beginning, middle and an end. This is especially true when you look at business ownership. It is inevitable that every business owner will start thinking about selling their business.
The savvy business owner will start planning to sell from the very beginning shortly after they acquired their business. Regardless of when you start thinking and planning the sale of your business, there are five key points that you should understand and consider
- Resolve current problems with your business. The last thing that a buyer wants is to buy into lingering problems or pending litigation. This will keep qualified buyers away from your business.
- Make sure all of the business records are up to date. This is an especially important aspect of you business on a day-to-day basis, especially with regard to your financial records. Make sure all of the licenses, operating certificates, corporate minutes, etc. are up to date and accurate.
- Meet with a Qualified Business Intermediary Early in the process. If you are thinking about selling your business, please give us a call. We offer confidential, no cost and no obligation consultations. We can assist you with the what is going on with the current market conditions, value your business effectively, and what we believe is most important in the end, help you make a better informed decision.
- Think about seller financing. If you want to obtain the maximum price for your business, you should consider providing some seller financing. Very few buyers will be able to come up with all of the required cash at the time of the sale, and the odds that bank financing will be available are likely slim. You should be flexible when it comes to the financial terms, as seller financing can go a long way towards leading to a closed deal.
- Planning for after the business sale. If you are really serious about selling your business, you should have a solid plan in place regarding what you will do once you sell your business. When we come across owners who cannot answer the question of what will you do next, after you sell your business, it is usually pretty safe to say that they are not a serious candidate to sell their business. In addition, are you and your family members or partners in agreement with the decision to sell? It is important to get ready now, so that when you put your business on the market you are prepared and committed to sell.