Congratulations, you are now at this point! After years of sweat and tears, you have decided to sell your business. It may not have been an easy choice, but everything seems to indicate that the right moment has finally arrived. But how on earth do you start this?
Selling a business, even a sole proprietorship, can be a complex adventure. The complexities of a sale can bring a lot of stress and headaches, and of course every business owner wants to get the most out of their sale. To make a business sale a successful adventure, it is important to make some thoughtful choices.
Do you need professional framing?
The complex nature of the sales process alone brings a lot of pressure. Therefore, it helps to be framed by a team of professionals, who can help ease this burden. For instance, you can hire a broker to negotiate on your behalf, hire an accountant to inspect the accounts and a lawyer to take care of the legal issues. These professionals can add tremendous value with their expertise, managing the sale of a business. Recommended: ecommerce business for sale
Why are you selling the business?
The first question you are often asked by a potential buyer is “why are you selling?”. The answer to this question is very important, as it can affect the attractiveness and value of the business. Common selling reasons include: illness, retirement, exhaustion or simply boredom. Besides these reasons, it is also good to think of attractive buying reasons. Are profits rising? Does the company have growth potential? Does the company have an extensive customer base?
Bringing flexibility to the table
An entrepreneur who shows flexibility is more likely to secure a satisfactory deal. A lack of flexibility can cause potential buyers to drop out. Ultimately, it is about finding a mutually beneficial compromise. This means that the seller will have to be flexible in terms of the valuation of their business (often the value of a business is overestimated), the terms of sale and even in the choice of who takes over the business. Those who do not want to water down will end up shooting themselves in the foot.
The value of a company is determined by a lot of market factors, and this can determine whether a sale can be beneficial or not. After all, the market may still experience strong growth, some favourable laws may be voted in politically, or the company’s operation may still be optimised. Exercising patience can pay off more in the long run for an entrepreneur who is aware of these parameters, and also has a strategy for this.