Deciding whether or not to sell your business is a difficult decision. Most likely, it will be the biggest financial transaction you’ll ever have to make. Yet, every successful business owner must face this eventually. And with the economic uncertainty swirling around us, here are seven factors to keep in mind when thinking about selling your business this year:
IS IT THE RIGHT TIME TO SELL? While it’s important to pay attention to what’s going on within your company, industry, and the overall economy, this is about you! If you feel ready to retire and move on, the answer is that it is time to sell.
IS YOUR BUSINESS READY? Your business should be properly managed. By now, you should have enough technology and staff in place to be able to demonstrate your company’s key performance indicators. If not, now’s the time to invest.
DO YOU HAVE TIME? If you want to sell your business by a certain date, allow sufficient time as selling a business is a complicated process that takes almost a year according to our statistics here at Transworld.
WHO ARE THE POTENTIAL BUYERS? They may include your competition, customers, vendors, suppliers, long-term employees or perhaps family members who wish to take over the business. Most often, it ends up being someone from outside your circle of influence. A good intermediary can perform a proper search and will assist you in determining the best acquirer even if it is a relative.
DO YOU HAVE PROPER RECORDS? You want all your hard work to pay off in the sale, so be sure to have current, detailed records that provide a verifiable assessment of the company’s financial position and future projections. Get your financials in order now!
HOW CAN I DETERMINE MY BUSINESS’ VALUE IN TODAY’S INFLATIONARY ECONOMY? A business’ value is determined by a compilation of factors including the company’s sales, earnings, performance, market outlook, personnel, net-book value and fair-market replacement value of equivalent operating assets. It is also influenced by intangible assets such as the company’s image, reputation, and good will. Macro-economic factors have not affected valuation as much as you would think.
DO I NEED PROFESSIONAL HELP? Regardless of your background, you should absolutely seek professional advice. There will be many nancial, legal and tax-related issues that will need to be considered before you can sell your business. Selling a business is a full-time job that should be handled by a well-trained expert. This will allow you to continue focusing on your company’s normal day-to-day business operations. Our staff at Transworld Business Advisors are skilled in the process of selling a business. The key is to have an experienced team of advisors during the sale process. This team should include a business broker/ intermediary, accountant, and lawyer who have experience in the deal process. Always remember that selling a business is usually a once-in-a-lifetime experience that you want to be successful.
TRANSWORLD BUSINESS ADVISORS