Selling a company is an extremely complex process. The timeline and the result can be affected by a variety of factors. The process is often complicated and time-consuming, and there are a variety of dangers that could strike the unaware business owner. They include not being able to sell at a lower than expected price, or revealing confidential information.
Fortunately, with the right preparation and support you can take the necessary steps to ensure that your business sale is successful. The key is to set realistic expectations for the process. This includes assessing your own personal readiness to let go and preparing for the financial impact of the sale and knowing what your company is really worth.
You must also be prepared for any inspections that may be required. It’s important to ensure that your financial statements are in order, have copies of all contracts you have with clients and suppliers and create an organizational chart to guide the flow of information. It’s a good idea invite interested parties to sign a nondisclosure agreement to protect your confidential data.
You must be prepared to answer questions about the reasons you’re selling your business, and why you think the time is right. It’s crucial to explain how your business will continue to flourish under the new ownership. Consider how the transition could affect your employees and how you can manage their emotions. If you can, locate an owner who will carry on the business’s legacy and mission.
