Selling a business can be a complex and emotional process. After all, it’s likely you poured your time and energy into growing the company and helping it flourish.
If you are considering putting a business on the market, it’s important to be sure you’re ready. Ask yourself these questions before listing your company:
What do I do next?
This may seem silly, but many business owners are unprepared for life after their business. If you are considering a sale, make sure you have a plan for what comes next.
Whether you’re planning on retiring or exploring a new project from scratch, have a plan in place. If you are unsure of what you’re going to do after you sell your business, start researching. It’s the greatest way to avoid seller’s remorse once you complete a sale.
What’s my availability after selling?
Many people looking to buy a business will be interested in having the current owner available to answer any questions or help them troubleshoot for a length of time. When you are considering a sale, make sure to pin down exactly how available you will be for the future owners.
If you want to wash your hands of the entire operation, let any potential buyers know this upfront. If you’re open to being a resource for them for a set period of time, consider including that in the sale contract.
Just be careful to set the expectations and boundaries before you agree to a sale.
How long does a sale take?
Many businesses can take months or years to sell. It’s imperative that you have a feel for the process before you begin. It’s easy to get impatient or settle for a substandard deal if you expect a fast resolution to your sale.
Preparing for a lengthy transaction period helps you stay level-headed and resist the temptation to rush into the first bid you receive.
Am I valuing the company correctly?
As an owner, it can be easy to misevaluate your company. Your personal emotional investment in the business may cause you to mentally overvalue the business. Or your readiness to move on may cause you to undervalue the company’s worth.
Either way, it’s important to look at your valuation process and ensure you are taking the proper methods to give your company a fair market valuation.
Helping things go right the first time
Selling a company is a massive undertaking that requires both emotional and time investment. If you’re considering a sale, a knowledgeable attorney can be a valuable resource.
They can help you throughout the process to ensure all paperwork and processes go smoothly.