The decision to sell a business may stem from boredom, illness, death, being overworked, partnership disputes or retirement. Whatever the reason behind the sale, business owners have to prepare themselves because the process may not run smoothly if not handled properly. The sale of a business typically requires assistance from an attorney, an accountant and a broker. These professionals can help ensure that the business owner sells the business legally and for the right price.
Business owners should be patient when selling a business. The process may take anywhere from six months to two years, depending on the situation. When searching for potential buyers, business owners have to consider several options. First, business owners should try and get at least two potential buyers because there is a strong possibility that one of them may back out before they close the deal. Second, business owners should stay in touch with the potential buyers. By doing so, potential buyers will have an idea on how the process is progressing. Third, business owners should determine if the potential buyers qualify for financing before they give out any vital information about the business entity. Fourth, business owners should consider negotiation so that both parties can set a reasonable price. Fifth, business owners should put all parts of the agreement in writing. To protect the business, potential buyers may be required to sign a confidentiality agreement.
An asset sale transaction can be a long process. It is important for business owners to avoid being hasty when negotiating with potential buyers. By doing so, they will have time to negotiate a fair price and walk away with confidence.
Business owners who have questions regarding sales and dissolutions may speak with a knowledgeable business law attorney to learn more information.
Source: Investopedia.com, “7 Steps to selling your small business,” Brigitte Yuille, accessed on Nov. 6, 2014