It is most likely that you have spent a significant amount of time and money on getting your business to its current standing. For one reason or another, there may come a time where you need to move on. Perhaps you are heading for retirement, or maybe you have your next commercial venture lined up.
Selling a business is not always as straightforward as it seems. There are a number of issues that need to be settled before you take the next step. Outlined below are some key factors to consider before selling your business.
How will your employees be affected?
Rarely can one individual go on to make a success of their business without a complementary team around them. Your employees are likely to have played a key role in maintaining both the efficiency and reputation of your commercial activities. For this reason, you might want to be open with them as early as is practical about the sale of the company. Additionally, it might be possible for them to stay on under new ownership. This is something that could be raised with any potential new buyers.
Obtaining an accurate valuation
Placing the appropriate value on your business is not always easy. Typically, there are many different moving parts to account for, which could require specific expertise to pin down an accurate assessment. Pitching with a valuation that is unrealistic could put off any potential buyers. At the same time, underselling what you have worked so hard to build will be to your detriment.
Having a firm understanding of your rights when selling a business could help to protect your interests. If a dispute arises, then there are legal options open to you.