What To Consider When Selling Your Business

When you start and build up a business, you may decide that selling it is the right option for you later down the line. This makes sense, especially if you can sell for a reasonable amount of money, you might even be able to retire. Of course, those who enjoy making new businesses and love seeing them succeed may not be able to retire forever, but if that’s the case, then you can use your profits to fund the new startup. Whatever you choose to do, here are some things you’ll need to consider before selling your business.

Get Advice

Whether you’ve sold dozens of businesses before or this is your first, it’s always a good idea to get advice regarding as many aspects of the sale as possible. Trying to do it all yourself is possible, but it might not give you the best profits. Plus you don’t want to fall foul of the law, especially where taxes are due. You could ask your chosen expert about opening a deferred sales trust, or about the pricing structure of your sale. You could ask about how to negotiate any offers that come your way, or what to include in the package. Asking questions and getting advice is essential for a good deal to take place.

Know Why You Are Selling

When you decide to sell up, it’s good to know why you’re selling. Is it for the money or because you’re tired of the business and want to try something new? Perhaps it’s because you want to spend more time with your family or you realize you don’t like being a leader anymore. Whatever it is, once you work it out, you can also work out the best deal for you. If, for example, you only want to walk away with a good profit, you will need to know what money you’re looking for to do so. If the sale is about family time, you might consider taking less money but still working in the company on a consultancy basis. There are many different options.

What About Shareholders?

Unless you own one hundred percent of your company and have no other shareholders and investors, you will need to consult them before selling as they have an interest in how much money is made, and even if the deal goes ahead in the first place. It will involve holding meetings so that everyone can have their say and put forward their ideas. It might be that some shareholders need to be bought out, or that they will want to stay with the company when it sells. This will all need to be considered when negotiations start.

Without managing the expectations of everyone involved, you might find that some interested parties who feel they have not been consultant could cause trouble which would present problems when it comes to selling.

There Must Be A Plan

Whatever your thoughts and whatever the thoughts of the other people involved, there must be a plan put in place so that everyone is happy with the outcome of discussions and the deal that will take place.

 

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