Selling Your Business
Those who run their own business are typically well-versed in the day-to-day business transactions and contracts that are necessary to keep things up and running.
However, when it comes to how to go about selling your business, there can often be more uncertainty and anxiety involved; precisely because the business is your baby. It is one of those major milestone transactions that needs to be done right.
Timing & Valuation are Important
One critical element which is often overlooked is the timing of a sale. It is best to market a company when the future of the business looks bright and profit prospects look good.
In addition, determining the appropriate price for your business is critical and helps determine how it will be introduced onto the market. Typically, you and your attorney will work with a CPA in order to help with the valuation and in ensuring all of your financial paperwork is in order in preparation for the sale.
It is also crucial to understand the various motives of buyers: while some may see an opportunity to increase sales or expertise within their own company; others may be interested in gaining access to new products or markets; while still others may simply want to acquire a business in order to halt a competitor.
Some common characteristics of what makes successful companies appealing include:
- An ability to problem solve;
- Having a great management team;
- Presence in countries that are key for that particular market; and
- Good governance and oversight during the selling process.
Also keep in mind that how you chose to structure your company will also play in role in what motives buyers have and what the tax consequences of the sale will be.
Questions from Buyers, Lawyers, and Company Personnel
Expect that you will need to answer many questions during the sale of your business, as well as engage in negotiations. This is where an experienced business attorney will be of significant assistance to you. Any agreement reached needs to ensure that it meets your needs in terms of what you expect and the structure of the sale, as well as what the buyer is assuming in terms of debts, contracts, assets, etc. Your attorney will also help you with any statements that need to be filed with the IRS in preparation for your own tax documentation.
Work With Someone Who Is Experienced & Trustworthy
If you are contemplating selling your business, you need to work with someone you trust to manage the selling process. Finding an experienced person to work with is absolutely necessary, as you may be going up against corporate development teams that probably acquire several companies per year. This is especially important if you want to stay with the business even after selling it in order to assist with the transition in ownership.
Contact one of our experienced business transaction attorneys at Suncoast Civil Law today to find out how we can help; we serve Sarasota and surrounding areas of Florida.