You have worked hard for years and established a successful business, but you feel it’s time to move on to new ventures and your next business. You may be considering how to sell your business? Selling a business can be a complex task at the outset. But it could be made simple by preparing for the sale in advance and ensuring a smooth transaction.
First of all, we commend you on making a tough decision to sell your business in which you have invested your time, effort and money.
We strive to make the process as simple and stress free as possible. With LawPath you can hire a business sale lawyer and receive 3 free fixed-price quotes.
Below is a step by step process that can help you with the sale of your business.
How to sell your business?
1. Be sure of what you are selling and the reason for sale
As a business owner, you may not want to sell your entire business. Selling a business can involve selling your stake in the business or selling assets of a business, or even selling the goodwill created by the business.
Be sure of what you intend to sell and what you wish to retain. This is a great starting point.
A potential buyer will always want to know why you are selling your business. Be clear of your reasons. These could range from retirement to boredom to moving countries. A buyer will want to buy your business only if they are convinced that they can take it forward, profit and expand an existing strong customer base.
Once you are aware of what you are selling, consider the following:
- Valuation: Know what your business is worth. You could get a valuation expert to appraise your business for you.
- Timing of the sale: Ensure that you get the best price. This is a business decision and could be linked to performance of your company or the industry that your business is in.
2. Keep a checklist of documents ready
Most sellers are in for a rude shock when they become aware of the documentation involved in a sale. You need to be well prepared right from the start. Below is an indication of the type of documents usually requested for:
- Financials – profit & loss and balance sheet, bank statements, tax returns.
- Legal documentation – employee agreements, franchise agreements, contracts with vendors and customers.
- Business details – a database of customers and vendors, details of employees and business procedures.
3. Get professional assistance
Do you need the services of a broker, a lawyer or an accountant? What do these professionals bring to the table?
- Accountant: Helps in getting your finances in place and also assists you with valuing your business and making future forecasts for performance.
- Lawyer: A lawyer can help you with drafting important documents such as constitution documents, contracts, and a business sale agreement.
- Brokers: A go-between to get you in touch with the right buyer.
4. Completing the sale transaction
The business sale agreement is one of the most important aspects in a business sale. This is where the services of a lawyer become very important.
At LawPath, we can help you to hire a business sale lawyer suited to your needs. A lawyer with expertise in business sales can help you with negotiating important terms in your business sale agreement and ensure that your legal rights and obligations are water-tight.
LawPath has access to highly qualified business sale lawyers who can assist with the sale of your business. Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.