What to Consider Before Selling a Business

Selling a business isn't easy and it shouldn't be a quick decision, but the benefits can be life changing. Here are a few things to consider if you're thinking of selling.

1. How will a buyer value my business? Don't be emotionally attached to the business when you're selling it. It's your 'baby' but buyers only care about what it will do for them. Buyers won't pay extra for potential. They are looking at today's value of an established, profitable business. Revenue doesn't equal profits. Your business might be drowning in overhead. What's the profit expenses?

Buyers expect transparency, expecting verifiable proof of everything. Buyers do their due diligence often by asking the same questions in different ways to turn up any inconsistencies and red flags. .......If they find something that you have been trying to hide, they will walk away.

2. Is this the right time to sell? If possible, don't wait for your business to be in decline when you sell and make sure the market is right to sell at a profit. Sell at the TOP!

3. Who is on my team? Attorneys, business brokers, etc will help receive a fair price for your business.

4. What are the potential deal breakers? Intellectual Property rights, tax implications, Liens and real property disputes may put buyers off. Place your house in order before you consider selling.

Selling a business can be a positive thing, if the timing is right and everything is in order.