Planning to Sell Your Business? 5 Steps to Take Ahead of Time

Selling your business is a huge decision, and one that you do not want to rush into. Taking the right steps now can help ensure you don’t regret your decision to sell, and also maximize the sale price, so you are happy with the results. Whether you’re just starting to think about selling your business or you are ready to sell right away, the following steps should always be taken.

Look at Your Reasons for Selling

The first step whenever selling a business is to really step back and look at your reasons for selling. Are you looking to retire? Has the business become unprofitable? Are you just tired of all the work? If you just don’t want to spend so much time working on your business, it may make sense to hire additional management to handle everything while you still get the profits. Knowing all your options before making any final decisions is critical.

Perform a Market Analysis

Just because you want to sell your business doesn’t mean that the market is looking to buy. Just like any other product, the market for buyers of your particular type of business is going to ebb and flow. There may be times when you need to sell as quickly as possible regardless of how much you get, in which case a market analysis may not be necessary. In most cases, however, this step can help you determine if it may be smart to delay the sale a year or two so you can dramatically increase the value of your business.

Look at Tax Implications

Selling a business is typically going to involve a major financial transaction. The IRS will want to make sure they get their piece of the deal. With the right planning and arrangements, you can minimize the amount of taxes that you need to pay on the sale of your business so you can keep as much of your hard earned money in your own pocket as possible.

Find the Right Buyer

If you are selling your business, you need to make sure you market it just like you would any other product. Making sure the right parties know that your business is for sale will help to ensure you get as much as possible in the transaction. There are a variety of websites and services you can use to make sure everyone who may be interested in acquiring your business are aware so they can start bidding.

Retain a Good Attorney

Selling a business can be a complicated legal experience, and not one you want to try to handle on your own. Working with an attorney who has experience with mergers, acquisitions, and selling businesses will help ensure everything goes smoothly from start to finish. Contact APH Law to set up a consultation with an attorney and get the advice you need.