There are many reasons a business owner would decide to sell their business. Family commitments, financial, location and health are just to name a few.
It would be safe to say that it is one of the biggest and hardest decision they are asked to take. There are many issues before you consider selling your business. Thorough research and analysis of your business is needed to ensure that you make maximum profits when putting your business on sale.
The very first important thing is time. You must know whether it is a right time to put your business on sale or not. If you feel that the market is down, and the prospective of a good deal are not visible, you should think to hold back your decision. You can use this time to make your business is attractive to good deals from investors. Below are some of the issues that you will need to solve prior and during the sale of a business:
-Negotiating with the wrong buyers
-Failing to identify best buyer
-Over-pricing the business, resulting in a reduction of interest and in some cases eliminating interest all together
-Failing to understand buyer’s motivations
-Structuring deal incorrectly
-Failing to obtain full value – at least value your business with the help of a professional if you intend to sell the business alone
-Waiting too long or selling too soon
When finding buyers, many sellers qualify people in a desperate attempt to get as many offers as possible. As a result, a lot of time is wasted with buyers that are not serious which could have been used with the serious potential buyers that have now lost interest. Not ensuring your partner/spouse likes the business too – if they don’t you’ve got problems!
Then, there are issues about tax and some governmental responsibilities that you might need to address. Changing of ownership and all other paper work needs to be done carefully so as to avoid any problems in future. These are some of the main issues that you need to sort-out once you decide that you need to sell your business. When you are confident that you have worked out on all of them, you are ready to decide whether you should put your business on sale or not.