Preparing to sell your successful business

On Behalf of | Jan 26, 2022 | Business Law |

Creating a business from the ground up takes years of dedication and commitment. As you build your company into a successful pillar in the community, you may start to consider what is next for you and your business.

Some business owners choose to pass their business on to their loved ones. However, selling your company could help guarantee that someone as committed and qualified as you takes the reins.

Here’s what you should know as you consider selling your company.

Understand your potential buyer

As you start thinking about selling your business, you should consider what type of buyer is likely to be interested and successful in your company. You are probably already accustomed to thinking about your particular type of customer, but considering the type of people who would buy your business may require a different analysis.

Evaluate your assets

Once you know what type of buyer is the best fit for your business, you will need to look at your company and what assets you are offering in the sale. There are a few different approaches to evaluating your assets, including:

  • Income approach. Incorporates potential risks in analyzing accounts and projected revenue.
  • Market approach. An analysis based on the sale price of other recently sold similar businesses.
  • Assets approach. An evaluation of the business made by subtracting current liabilities from the total value of all assets.

Other questions to ask:

  • Do you want to sell the entire company or only shares?
  • Do you want to sell only tangible assets and retain things like intellectual property, trade secrets and client lists?

As you consider putting your business up for sale, you may want to talk to people in your network about leads for potential buyers. You may find interest from someone looking to take their next step in the industry.

Selling your business can be a complex process. Whatever route you take, be sure to get sound counsel and guidance from an attorney with extensive experience in business, intellectual property, real estate and contract law.