The decision to sell your business is never an easy one. After all, you have put considerable effort into getting your business off the ground and probably even developed an attachment to it. However, with proper planning and preparation, you could end up with a good deal – one that makes all your hard work worthwhile.
To make your sale a success, remember these rules:
1. Preparation is key
A merger or acquisition can take time to finalize, and it is crucial to start planning early. Be prepared to get your paperwork together, to have the business valued and take other necessary steps so that the company’s financials are clear.
2. Maintain business as usual
You need to continue running your business as usual just in case the deal falls through. It can be easy to be distracted by ongoing negotiations but keep in mind that the company needs to remain operational even if the talks are not conclusive. If you lose focus on the business operations and things start going wrong, it could affect your company’s value.
3. Consider seeking professional help
It is worthwhile to seek an informed opinion on the legal and financial aspects of the deal. This will help you avoid any liability or tax issues in the future that may arise from the sale. It can also help you avoid mistakes that will shortchange you.
4. Have realistic expectations
As a business owner, it is understandable to place a high premium on your business, especially if you went through a lot to get to where you currently are. However, it is advisable not to have unrealistic expectations which may prevent the sale while at the same time, you should not settle for a deal that shortchanges you.