Are you a small business owner who has been thinking about selling? If you are like most small business owners, this is probably not a decision that you are taking lightly.
In deciding whether or not to sell, you should consider many factors, including how the business is doing, how the economy is doing and how you, personally, are doing.
As a FindLaw.com article pointed out, it’s best to sell when the economy and your business are doing well, but your personal considerations might influence your decision the most.
Once you have decided that it is time to sell your business, it’s important to work with a business lawyer who can help make sure the transaction goes as smoothly as possible.
Since the process of selling a business can be long, it’s important to begin working with a lawyer as soon as possible so that you can plan well in advance.
One of the first steps in preparing to sell your business is understanding its true value so that you can get the best possible price.
A business appraiser can offer an outsider’s opinion on what your business may be worth since it can be hard for you to place a value on something that you are so closely involved with.
When you look for potential buyers, you can start with your local business community because even if other business owners don’t personally want to buy your business, they may know of someone else who might.
Another option is to work with a business broker or another real estate professional who has a good understanding of the market.
Next, financing is an issue that you will have to consider carefully with your lawyer. It’s not likely that the buyer will be able to pay you for the business in a lump sum, so a loan from a third-party like a bank might be the best option.
Finally, there are the details of the agreement, which should be spelled out in a legal document that your lawyer has created. It should address essentials such as the purchase price, payment terms, fees and closing date.
Ultimately, selling a business is hardly ever a cut-and-dried matter, no matter how much we might wish it could be. That’s why working with a business lawyer from the beginning can help protect your interests.