When you first started your business, your personal goals were probably very similar to your own business goals. However, after many years, that alignment may not be as strong as it once was, and you may be considering selling your business.
There are numerous reasons for this. Maybe you’ve considered handing over the business to your children, but they’re not much interested. Maybe it’s time to retire and enjoy the wealth you’ve amassed. Or you may have that urge to move from running an established business to creating a brand-new start-up.
Another option to consider is to sell your business while continuing to work as a leader, advisor, senior executive or consultant – full-time or part-time. Given your existing relationships with customers, suppliers, and key employees, such an agreement could actually boost the value of your company. If you agree to stay on, potential buyers may be willing to pay more for your business, because it reduces their risk and minimizes disruption. Working with a certified business broker will provide the expertise to help you make the best decisions.
Think carefully about your reasons, whatever they may be. The sale of your business is a once-in-a-lifetime event with no “do-overs.” Of course, there are many advantages to selling your business, but there are also some pitfalls to consider.
If you are planning to sell your business, Certified Business Broker Moche Hazout and the Transworld Business Brokers team have the qualifications and expertise to support you during the entire process of the business transaction.
Let us look at some of the benefits of selling your business:
- Structuring a deal that transfers your business to new owners and provides you with liquidity while also allowing you to stay involved in the business if you so desire. Look for the opportunity to stay involved in the business you’ve worked so hard to build by serving as a senior executive or advisor to help the buyers simplify the transition to new ownership.
- Taking advantage of every opportunity, it could be the ideal time to sell your business for the best possible price. Although the overall economy and trends in your specific industry may create high demand and attract many potential buyers- this could change over time.
- Expanding your personal finances is another great benefit. If your business’ equity is its most valuable asset, selling it allows you to convert some or all of those assets into more liquid and diverse investments.
Consider the following potential pitfalls when selling your business:
- Engaging in highly complex transactions that necessitate extensive negotiations over an extended period of time. You may miss the chance to sell at the right price before an agreement is reached and all parties are satisfied.
- A potential requisite for you to sign a non-compete agreement, which could restrict your ability to consult with similar businesses – or start another business – within a certain time frame.
- The possibility that you will need to finance a portion of the transaction, which may put some of your assets at risk. However, if you continue to be engaged with your company after the sale, the new owners will face less risk and may be willing to finance a larger portion of the sale price themselves.
Consider your options carefully before selling your business. Before making this critical decision, consult with family and friends – as well as your attorney, accountant and consider working with an experienced business broker to help the process go more smoothly with the best possible outcomes.