If you have a privately owned small business that you plan to sell you need to have the right authorities involved. It is important that you have the right selling price and that you have the deal structured the way you desire to make it come to fruition without problems. Having experience professionals involved will make a huge difference. This means that you’ll need experience accountants, attorneys, brokers and more.Getting Ready for the Sale of Your Business
As a potential buyer you should know that preparing to sell your business is a big deal. This is what business lawyers refer to as “due diligence”. It’s the entire legal process that is managed to ensure that everything is done properly and in order with the sale of the business according to state and federal laws. The top priority for you as the seller of your business is to make sure that the books are completed in order to show all financial information.Valuation and Assets
If you are trying to set a sales price for your business you may feel as though you are at a loss. This is where a proper valuation of your business and assets comes into play. If you are a private business owner, it could be that your business lacks the attention from the public market that most investors are looking for. Revenue, current earnings, future earnings and anything in the future pertaining to assets are all important to record and share with the buyer. As with the sale of anything, it’s always about what someone is willing to pay in the end.
You may also wish to sell only the assets of your business. In this case you can sell partial assets or all of them, the choice is yours. When selling assets only, keep in mind that you’ll still be responsible for the shell of the business and all other operations. The only time a buyer will actually step into your shoes is if they are purchasing your business outright. For this reason it is important to put all agreements in writing. Selling a business is big business! Make sure that if you are not familiar with the laws regarding the sale of your business and assets that you seek out the help of a business law attorney.