When business owners in Denver, Colorado, start a business, they know that they have to exert considerable time and effort to make the business a success. So when a business owner decides to sell a business, it can be a very difficult process, especially if the owner has been handling the business for quite some time now and for some unknown reasons has decided to let go. Whatever the reason behind a decision to sell a business, it is important that an owner handle the process correctly. By making sound decisions during the sales and dissolutions, the business owner, will be able to walk away with a fair amount of compensation.
The sale and dissolution of a business is not a simple process. First, one has to determine the value of one’s business before you can proceed with your plan. One of the most common mistakes of business owners is selling their business at a low price without even considering the real value of that business. It is best to hire a business appraiser to determine the value of the business. Business appraisers will look at the tangible and intangible assets in order to determine the real value of the business.
Once the business appraiser has finished the business appraisal, a person has to look for buyers. An owner may start with local business peers who may be interested in buying the business. He or she may also speak with large companies that may be interested in buying the business. Selling a business can take months or even a year, depending on the circumstances. It is important to remain calm during the process in order to avoid mistakes that can lessen the potential value of the business.
Once someone has found a buyer, it is time to draft an agreement that outlines how the asset sale transactions are going to be made, along with the payment terms and other important aspects of the deal. This is a critical stage and that may require legal guidance throughout the process.
Source: FindLaw.com, “How and when to sell a business,” accessed on Aug. 28, 2014