Thinking of selling your business? Ask these questions first

March 26, 2013

Thinking of selling your business? Ask these questions first

Article provided by Law Offices of Kenneth T. Wasserman
Visit us at http://www.kenwasserman.com

The decision to sell a business is never one that should be taken lightly. While selling a business can provide the former owner with a welcome influx of cash, doing it at the wrong time -- or making mistakes that rob the business of its true value -- can prevent business owners from recognizing the gains they expected.

If you are thinking about selling your business, it is a good idea to start working with an experienced business law attorney early on in the process. The attorney can help you identify your needs and make sure you are well-positioned for sale. As the process progresses, the attorney can help ensure that everything proceeds correctly.

Before putting your business on the market, take some time to think about whether you are truly ready and what you want to get out of the sale. Start with the following considerations:
-Are you prepared to sell? Before selling your business, you'll want to make sure that all your affairs and records are in order and that you can accurately demonstrate your business's profitability on paper. Depending on the complexity of your business, this process could take a few months or a few years.

-Can your business thrive without you? If a lot of the knowledge it takes to run your business lives inside your own head, you're going to need to take some time to write it down and train others before moving on. As an alternative, you may be able to stay on for a few months or a year to get the new owner up to speed.

-Is your business doing well? Few people want to buy a failing business, and even fewer will pay top dollar for one. It is better to sell your business while you are doing your best. If you need to -- and if you can afford it -- you may want to take some time to bring your business back up to speed before selling.

-How are market conditions? Again, few people will want to embark on a new business venture that is at significant risk of losing money. While part of this rests on what you do, a lot of it depends on the market as a whole. If the market in your industry is going through a rough patch, it may make more sense to wait to sell.

-Do I have the right team? It is nearly impossible to sell a business on your own and do it well. In addition to a business law attorney, you'll probably also want to consult with an accountant and a tax professional. In addition, you'll want to make sure your in-house staff is on board and ready to help get the business set to sell.

Of course, these are only a few of the considerations that are relevant when selling a business. However, by keeping these concerns in mind, you can help ensure that your business sale goes as smoothly as possible.