There may come a time when selling your business is the best option. When you are ready to move on, you need to take the right steps towards selling your business. Properly preparing for the sale will ensure that you get the best price for your business and the sale will be completed without problems.
Determine the Price
One of the most important decisions to make is also one of the most complicated. You will lose money if you set the price too low, but you may not be able to sell your business if the price is too high. To determine the price, review your sales for the last several years. Look at similar businesses to see their selling prices. Keep in mind that you probably put a lot of energy and sweat equity into your business, which is not something you should expect to get back.
Find a Buyer
It isn’t always easy to find a buyer for your business. You may need to get creative about where and how to locate potential buyers. Beware of companies who charge high fees to advertise your business for sale. Consider placing ads in trade publications or with organizations that deal with your type of product or service. You can also get the word out through friends and relatives that you are putting the business up for sale.
Negotiate the Sale
While you may be eager to sell, it doesn’t mean that you have to take the first offer that comes your way. This is particularly true if the offer is too low. Make a list of the main issues involved in the sale and then decide ahead of time how to handle negotiations. There may be some items you are holding back, which could be helpful when negotiating the price. For example, you may choose to keep the company vehicle out of the transaction initially, but may add it later as a way to improve the sale.
Complete the Contract
Once you have found a buyer and negotiated a fair price, the next step is to finalize the deal with a contract. A contract is essential in protecting you after the sale is complete. It is helpful to have the contract written or reviewed by a lawyer, who will make sure that your interests are protected and that the sale is properly completed. Selling your business can be complex, and brings with it many issues that need to be addressed. It is best to discuss the sale with a qualified business attorney.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Selling Your Business, or any other litigation issues, please feel free to contact us at 480.461.5300, log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.