As highlighted in a previous post, there are several risk factors involved in selling your business and they must be identified before bringing your business to market. While there are some risk factors within the framework of your company that can be identified and remedied, there are some risk factors that are from external forces that cannot be solved by the owner and are inevitable. One risk in particular of this nature is environmental risk.
Environmental regulations became prominent around the late 20th century, and they continue pass into law as the days go on. Businesses that have existed for decades are constantly having to readjust from the incessant creation of new regulations relating to environmental factors, and some of them can’t keep up and eventually go out of business, while other owners, spurred by this ostensibly chaotic climate, look to sell their business and wash their hands of the matter before it happens to them. This is why buyers are all the more cautious nowadays, as they do not want to be the recipients of another owner’s declining burdens.
If your business is in an industry that is subject to extensive environmental regulation, and you are looking to sell, it is best that you have a professional that can help you identify these risks so that you are prepared from any objections that a potential buyer will make. Contact Moshe Hazout at Transworld Business Advisors today!