Contributed article in our business series. Enjoy! – Kimberly
The fact you clicked on this article means you are probably considering selling your business. It is a big step, so it makes sense you might be undecided whether to grow your company or allow someone else to take the baton.
Is Your Business Ready?
Do you know if your business is ready for sale? To sell your company to a buyer, you must be able to produce between two or three years of tax returns, as well as any other paperwork, such as turnover and profit documentation. This will ensure you receive the best possible price for your business.
Is it the Right Time to Sell?
You might be ready to sell your business, but is it the right time for your company? Some people choose to sell their business once it is in the red, but that could be a big mistake. The best time to sell up should be when a company is at the top of its game – because that is when it will be most attractive to a buyer and will ensure you receive the maximum amount for the business you have built.
Is the Market Ready?
You might be ready to sell but the market might not be. You should only sell up when the market is ready. While you might have received the best possible price a couple of years ago, industry changes might mean your business is not as attractive to potential buyers. So, if the market isn’t right, it might be best to wait until it improves. It is the smart decision.
Can You Compete with Your Competitors?
The marketplace is becoming more competitive, so you must ask yourself whether you have what it takes to survive in your industry. Technological advancements and business trends could mean you are no longer a key player and, if that is the case, it might be time to hand over the reins to someone who can give it the love and attention your business needs to succeed. Don’t allow your business to give up on you before you have a chance to give it up.
Do You Know How to Sell Your Firm?
You might want to sell your firm but do you know how to? If not, it might time to consult a professional who can help you make a sale. For example, LawBiz can help sell a law firm, providing a ballpark valuation of your company, the transfer of sale and practical advice. An experienced advisor can ensure a smooth sale, so you can simply enjoy the transition and the new-found freedom.
Would You Stay on as a Consultant?
A buyer might be interested in the company, but they may ask you to remain on staff in a consulting role, with the hope of learning from your expertise or ensuring a gradual transition of ownership for a six-month period. It could be an option – or you could even offer your services as a way of reducing a buyer’s risk when purchasing the company.
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