Are you mulling over the sale of your business? The decision to sell often is an entrepreneur’s biggest transaction, with emotions sometimes as overwhelming as the legal and business issues. As much as ever, it’s time for a strategy.
Here are six issues that any business owner needs to cover before selling.
#1. When do you want to transition out of business?
#2. Do you want to continue to work with the business after the sale? In what capacity?
#3. Do you trust the potential buyer? Can the potential buyer manage the business alone?
#4. How much will you rely on the wealth from this sale for your future?
#5. Sometimes you can get more money with owner financing of the sale, but not without risk. Are you willing to take some risk of business failure after the sale? Or do you want cash at the sale?
#6. What do you believe the value of the business is today? What will it be at the time of the transition?
No doubt you’ve put time and energy into building your business. Whether you believe it’s time to sell your business or a potential buyer has come courting you, don’t rush your decision. Your answers to these questions will set the tone for a strategy that you and your legal team can adopt to get you the deal you want and deserve.
Have you sold a business? What did you do right? What would you do differently? Share your experience in the comments section.
Each case is unique. Past results do not guarantee future outcomes. This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. FreeImages.com Photographer Robert Owen-Wahl.
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Posted In: Business ManagementAbout the AuthorR. Shawn McBride — is the Managing Member of The R. Shawn McBride Law Firm, PLLC. Shawn works successful, private business owners in their growth and missions to make a company that stands the test of time. You can email R. Shawn McBride Law Firm or call (214) 418-0258.