Clear And Caring Counsel
Brock Zettle Legal Team

3 things to consider when selling your business

On Behalf of | Mar 21, 2024 | Business Law |

Selling your business is a significant decision that requires careful planning and preparation. When you decide the time is right to sell, you need to prepare for the process carefully.

There are several factors to consider before you list your business for sale.

1. Determine your business’s value

Before putting your business on the market, you need a clear understanding of its value. This requires a thorough valuation process including financial performance, assets, market conditions and growth potential. A professional business appraiser can provide an objective assessment and help you set a realistic asking price.

2. Prepare your financials and documentation

Potential buyers will want to see detailed financial records and documentation to assess the health and potential of your business. Make sure your books are current, accurate and transparent. Compile essential documents such as tax returns, contracts, leases and intellectual property agreements.

3. Plan for the transition

Consider how you will communicate the sale to your employees, customers and suppliers. Develop a succession plan that outlines the transfer of responsibilities and knowledge to the new owner. By proactively addressing these transition aspects, you can minimize disruptions and maintain the value of your business throughout the sale process.

When the time comes to transition your business to a new owner, how you handle it makes a big difference. The transition of ownership affects not only you and the buyer but also your customers and the community you built. Taking the time to properly prepare and communicate the transition can make all the difference in your business sales experience.