If you have been toying with the thought of selling your small business, would now make the most sense to do so?
You want to put as much time and effort into thinking about such a decision. Remember, the last thing you want to do is look back with regret one day.
That said what would lead you to consider selling and how best to go about it?
Knowing When it Makes Most Sense
If you have thoughts of selling, here are some things to clearly run through your head:
1. Is the time right? – One of the toughest you can have to answer is if the timing is in fact good. For a wide array of reasons, now in fact may not be the time to sell. Think it all through from finances to what you will do next and more. When you cover all your bases, odds are you can feel more comfortable about such a proposed sale.
2. Is your business attractive? – You also can’t afford to gloss over how attractive your business may be to the buying public. For example, do you have any legal issues hanging over your head when it comes to the business? Even one legal issue has the potential to kill a deal. That said you want to be sure and proceed with legal due diligence. Doing so means you have your bases covered when it relates to the legal aspects of such a sale. You should also do some digging on any prospective buyers. Make sure they are who they claim to be and can afford to buy your company. By being smart about a proposed sale, there is less chance of trouble coming your way.
3. Getting what your business is in fact worth – The last thing you want to have happen is you get taken to the cleaners. So, make sure you get the asking price or as close to it as possible. Don’t look back with regret that someone took advantage of you. Doing a full assessment of the assets and liabilities of your business is key. Getting every dollar possible for what the company is worth should be the goal at hand.
4. Knowing what happens to workers – In the event you have workers, what is going to happen to them should you sell? Having their best interests in mind is something that should be on your mind. Are you looking to start another business? If the answer is yes, would you offer your current employees roles in the new company? Might you put language in a proposed sale contract? Language that says the new owner must at least offer jobs to your current team? Know what plans in fact may be available for those who’ve worked hard for you.
5. Knowing what happens to you next – Last, what might happen to you once you have sold the business? Would you start another operation? Might you go work in the corporate world? Is it time for retirement? Those are but a few of the things to think over.
When you have the thought of selling your business in mind, how do you think it may turn out?