Considering Selling? Some Things to Consider

Considering Selling? Some Things to Consider

Know what your business is worth. Don’t even think about selling until you know the range of likely selling prices. Are you prepared to lower your price if necessary?

Prepare now. It’s often said, “The time to prepare your business to sell is the day you start it or buy it”. Easy to say, but seldom done. Now is the time to start planning when you will sell your business and to prepare for that day.

Sell when business is good. The old quote: “The time to sell your business is when it is doing well” should also be adhered to. It very seldom is – most sellers wait until things are not going well.

Know the tax implications. Ask your accountant about the tax impact of selling your business. Do this on an annual basis just in case. However, the tax impact is only one area to consider and a sale should not be predicated on this issue alone.

Keep up the business. Continuing to manage the business is a full-time job. Building a management team and retaining experienced outside advisors is also a must. Utilizing a professional M&A advisor will allow you to spend most of your time running your business.

Finally, in the words of many experts, “Keep it simple.” Don’t let what looks like a complicated deal go by the boards. Have your outside professionals ready at hand to see if it is really as complicated as it may look.