Selling a business can be a long and difficult process however with the correct guidance you can sell your business in a way that can help it to grow and prosper in the future whilst still receiving a fair price for the work you have put into it. Set out below are “5 top tips” to help ensure you sell your business for the right price and to help the sale run smoothly:
Before you sell your business know which aspects of the business you want to sell. Carefully consider what assets the business has and if there is anything that needs to be excluded from the sale. If the company is incorporated then it is necessary to decide whether to sell the business as a going concern (selling all of the assets but not the company) or to sell the shares of the company (selling everything including the company). Careful consideration needs to be given to each option and aspect of the sale.
Selling a business can be complicated and during this time the business needs to continue to run successfully. With your attention focused mostly upon the sale the business may suffer therefore it is necessary to get professional help allowing you more time to mange the business as normal. A lawyer will be needed to draw up or to review documentation to negotiate the best deal for you, and a business broker can be a must in finding potential purchasers.
Your business is worth what a potential purchaser is willing to pay for it but it’s good to have an idea of how much you expect in mind. Valuations can be made in a variety of different ways and different valuations will produce different figures however it is useful to hire an independent adviser to properly value the business. An independent valuation will have more credibility with the potential purchaser.
Make sure that during the sale the business is running as it normally would. Ensure that all records are up to date and try to pre-empt the things that the purchaser may request such as ongoing contracts and details for the employees and make sure these are readily available.
Selling a business can sometimes be a long process however after all the time you have spent growing the business it is worth spending time making sure that the sale is right for you. Don’t be afraid to turn down a purchaser if their expectations do not fit with your own to ensure that when you do sell it’s at the right time and for the right reasons.
Careful preparation and getting professional help are essential to ensuring that your business sells on your terms. For further advice on selling your business or assistance on any Company/Commercial Law matters contact our Commercial Law Specialist Umberto Vietri 01535 firstname.lastname@example.org
Partner and Commercial Solicitor
Tel: (01535) 613 674