Selling your business can be both an exciting and anxiety inducing process. There are so many things to keep in mind and for many of us, our businesses almost feel like another family member. If you’ve created your business from scratch, it’s likely been a labour of love and no matter the reasons you’re selling it, it may be a more emotional process than you expect. There are a number of things to keep in your mind before you even start the selling process, which will help you be better informed and have a better outcome. Here are the realities of selling a business:
1. Spend Time Learning It’s Worth
If you have a physical business with stock, offices and so forth, it may be quite time consuming calculating how much all of it is worth. It’s important to start well before you even want to sell, so that you can get a fair idea of what to expect. It’s also important to consider the market value of your business and to look at what your annual returns are. Doing a bit of research before you even get serious about selling is a good way to ensure that your expectations are really realistic. Consider working with a selling advisor that can ensure you get the best price for your business, such as BCMS.
2. Outline What You Are Selling
Maybe you’re prepared to sell everything – from the name, existing branding, right down to every cup and saucer in your cafe. Maybe you want to do a partial sale, or perhaps you even just want to sell some stocks to get a bit more capital for growth. Every business sale will be as different as the people selling them, meaning that it’s up to you to decide what you’re prepared to include in the sale of your business. It may be wise to be open to negotiation as well, because the eventual buyer may want to negotiate some things in order to make the deal more appealing.
3. Budget Enough Time
It can be quite a slow process once you’ve found the buyer. They will have to organise their finances, which can take a bit of time to be released. There will also be some backwards and forwards within the negotiation process. After you’ve come to a verbal agreement and the funds are ready, the next step is getting all the legal contracts drafted, proofed and signed. The entire process can take months, which is often surprising when you’re looking to make a quick sale. Add in the time to find a buyer, and often selling a business is quite a slow process. That’s why it’s important to begin the process with ample time to ensure you don’t have to rush and accept a low bid.
Selling your business can be a great move forward for you and your family. Be sure to allocate enough time and seek out professional advice so you can make the best decision possible.