Essential Things to Consider Before You Sell Your Business
Although you may know it’s the right time to sell, that doesn’t mean the decision will be an easy one to make. Not only are there key practical elements to consider – the financial arrangement, the strategy of incoming management, the impact on your employees, etc. Letting go of the business you built from the ground up can be very emotional, too.
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The timing of your sale
Timing is an important factor when determining if it’s a good idea to sell a business. It may be the ideal time to ask for a high price or this might be the best time to sell in order to generate enough for an early retirement.
While many people discuss the perfect conditions for selling a business, the emotional aspect is often neglected. Ask yourself: Am Iready to sell my business? This is something you should consider. Don’t be too hard on yourself. After building a business from scratch over many years it can be a challenge to let it go. Make sure that the time is right to do so.
What the buyer wants
Another aspect of selling a business is making sure that you are happy with what the buyer wants to do with it once the sale has been completed. Every business owner has a vision and most want the new management to continue to pursue this vision in the future.
Who do you want to sell to?
Would it bother you if a large corporation would acquire your business? Some business owners prefer that the company is sold to other business owners with a similar goal to avoid business practices such as stripping the company, hostile takeovers, etc.
What do you want out of the sale?
Ask yourself, what do you want out of the sale? Why are you selling your business? This is as important to know for yourself as it is for buyers.
Some possible reasons for selling a company are:
- Retirement
- To profit
- The business is in-demand and growing
- Relocating to another city or country
- Starting another business
- Focusing on another existing business
Selling your business is a time-consuming and complicated process that can often be very emotional and difficult to complete. Once the sale is completed, it will give you the room to pursue new opportunities.
