Thinking about selling your business? Stop and think what if it isn’t the right deal for you. If your sixth sense isn’t working what shall help you out in the nerve wrecking situation. Selling a business should never be a spur of the moment decision, you need to first figure out things like if you should sell, when is the best time to sell and what you should consider before selling, among many other considerations.
Business selling is one of the most crucial decision for both the top management and the stake holders of the company, keeping the best interest of all. How do it better and what compelling queries should you ask? So, to help you clear the mess, I have listed 10 most important queries to answer before closing the business selling. Here they are:
1. Ready to Sell?
Your business should be established for at least two years before you plan to sell it off. Also make sure to produce tax return of at least two to three years that are accurate and show maximum profitability to get the best price for your business.
2. Value my business?
Particularly family ownerships, companies sometime run everything through business, such as country club dues or car allowances. Loading the business with tax write-offs can undervalue your business in front of the buyers.
3. Team Members?
Who shall benefit you the most at the time of business sell? Is it the accountant, appraiser, attorney whose services shall ensure smooth sailing during the business deal and also help to get the best price.
4. Right Time?
Many business wait till the business decline, well you should do exactly opposite of that. Sell a business when it is at its peak; think like an entrepreneur not like a business owner.
5. Right Market?
Is the current market situation right for you? Take an example of home improvement business in 2006 which was ruling and just fast forward a few years down the line many roofing, siding, home-financing companies have come up and take over the better half.
6. Coping with future situation?
Rapidly changing economy, increasing globalization has proved too much for the business owners to keep up. Focus yourself for the next 3 to 4 years if you cannot keep up sell it now!
7. Stay on?
Sometimes on friendly business deals you may like to stay on for a healthy 6 months in a consulting role, but always evaluate if it’s worth investing such a time period.
8. Potential Deal-breakers?
Unresolved issues can pose problems later, especially at the time of sale, interfering with the deal closure, more specifically at the areas of company ownership, accounting and intellectual property rights.
However before outright sales, it’s always advisable to evaluate an alternate situation. If there is none, just enjoy the time and relax. Go for a holiday may be!!