Whether you’re selling your business because you need to survive or you’re selling because you’re ready to retire, it could be a daunting task if it’s something you’ve never done before. Fortunately, a lawyer can help you through the process so it is smooth and successful. If you’re planning to sell your business, there are some issues you should be aware of.
Your Window of Opportunity
Depending on the industry your business is in, there may be a window of opportunity that you don’t want to miss. Some business owners try to sell during the wrong season, and that’s simply not going to be effective. Businesses often take up to three or four years to sell, so you have to keep that window open for long enough to find success. Trying to sell during a recession might not yield results, but waiting too long after the economy has begun to bounce back could also end unsuccessfully. Your lawyer can help you determine when would be the best time to try.
Your business isn’t going to sell itself. Some business owners feel they can just put out a “for sale” sign and they will have dozens of interested buyers, but it just doesn’t work that way. Marketing your business when it is for sale is just as important as marketing when you are in business. You can use a broker to help with the marketing process, but you know your business better than anyone else, so you are your best weapon for marketing.
The Wrong Asking Price
Deciding on an asking price can be one of the hardest tasks when selling a business. If you ask for too high an amount, you may not get anyone interested in buying. If you ask for too low an amount, you might not make what you need to stay out of financial trouble and meet your other financial obligations. Do your homework, speak with a broker, meet with a consultant and know what you’re doing before you set the price.
Accepting an Offer
You don’t have to accept the first offer that comes along if you don’t feel it’s fair or you don’t feel the purchaser is competent enough to handle the business. Go ahead and leave your offer acceptance window open for a period of time before you look at the offers to decide on one. This gives you an opportunity to decide which buyer will help your business succeed after the sale, and also which buyer is offering the fairest price.
Most business transactions are more official when you involve the right professionals. Consider contacting a business lawyer, similar to an asset protection lawyer at Bott & Associates, LTD., for assistance in selling your business.