If running your business has become more of a chore than a joy, you may dream of escape. Maybe you dream of a stranger walking into your office, asking you how much and signing a check on the spot. The truth is, selling a business is not that simple. Adequate planning is essential if the sale is to be a success for both parties.
It can be challenging to value a company
There are several recognized ways to determine a company’s value. Yet none are foolproof. It may take time for you and the buyer to agree on what your company is worth.
You can’t forget your company’s human assets
When you leave your company, it will affect the people that work for you. Even if they retain their jobs, life will be different under a new owner. Be sure to complete all the paperwork required and ensure employees have a way to seek a reference if they are cut or choose to leave.
The paperwork jungle can be pretty thick
When you sell the company, it is crucial to terminate all your legal and fiscal obligations. You may need to transfer licenses. You might need to remove your name from service providers such as the internet, phone and water company. The sale could have tax implications for you too.
You need time to manage the transition
Making yourself available for a transition can increase the chance the business thrives after you leave. If you walk out the door the moment the money hits your bank account, you will make things harder for the new owners, the staff and clients.
Whether starting a company or selling one, sound legal advice can help you avoid problems at all stages of your business journey. Business laws can change frequently. Failing to keep up to date with the latest developments could leave you open to litigation.