When you make the decision to sell your business, closing the sale is only part of the process. Some additional points to consider can include: your reason for selling, the information you will need to gather, the value of your business, maintaining confidentiality, the buyer’s perspective, hiring professionals, and studying the offers. If you have employees, you will also want to inform them of your plan to sell the business.
A potential buyer will often want to know why you are selling your business. By providing a valid reason you can help the buyer make an informed decision.
Some of the most common reasons for selling a business are:
There are a number of documents that may be required when you sell your business, including:
The selling prices of similar businesses in your area can give you an idea of what your business may be worth.
When determining the value of your business, it is important to consider both its physical and intangible assets. Buyers may be willing to pay a higher price for an established business with intangible assets, which can include:
To avoid giving away information that can be used to compete against you, provide financial information only to serious potential buyers. You may also ask a potential buyer to sign a non-disclosure agreement.
Present your business to a buyer the way you would want to see it if you were buying the business. Make sure that buyers are aware of the profitable aspects of your business.
In some cases, you may want to hire a business broker or lawyer to help you sell the business.
Some of the advantages of hiring a business broker are:
A lawyer can be consulted for assistance with any legal matters, such as:
Take the time to negotiate the sale of your business. Study the offers you receive before accepting and provide a counter offer, if needed.
Make sure that your employees hear about the sale of the business from you and not from someone else. Whether you choose to tell them before you sell or after you find a buyer, some of your staff might still decide to seek employment elsewhere. Be aware of this possibility and plan for it to reduce the impact on the sale of your business.
For more information on selling your business and other business topics, contact Canada Business Ontario today. Telephone services are available in English or French.