5 Things To Consider When Selling Your Business
If you own a business and are planning to sell it, you have to make sure you get things in order to avoid getting yourself into a situation that could have been avoided if you took your time to address them before selling the business.
To help you avoid putting yourself in a bad situation, we have compiled a list of things you should consider before selling your business.
- Consult With Tax And Estate Planners
Before selling your business, the first thing you need to do is consult an accountant as well as an estate planner. Let them know that you want to sell your business and have them review your tax situation as well as your estate plans.
Having them do this will help you avoid any future tax or estate issues that could arise from the sale of the business.
- Splitting The Business
This only applies if you are in a joint venture or partnership with other owners. Consulting with the other owners is important because you have to get their input on selling the business, and if they don’t want to sell, they have the option of buying you out or allowing you to sell off your share of the business.
- Packaging The Business
Figuring out how to package your business is crucial because you have to let prospective buyers know exactly what they are paying for. The buyers need to know if you own the building or if you are leasing it. They need to know if the furniture and equipment come with the company, and if your current employees will stay on or if they have to hire their own people.
Selling your business is an important decision because it affects you and the people that work for you. If you are going forward with the sale, you should let your employees know within a reasonable time frame so they can start looking for new jobs if the new owners don’t plan on keeping them around.
- Post-Sale Finances
If you are planning to retire after selling your business, you should make sure you have a plan for your retirement income and finances so you’re not forced to come out of retirement to go back to work. You will also need to find something to do to keep yourself busy after selling your business, so make sure you have enough money put away from the sale of your business to keep you going.
If you need some help with selling your business, you should check out the BCMS guide to selling your business, for important information on what you need to do before selling your business.