Selling a business can be a great next step for a Louisiana business owner. However, it can be a complicated process for anyone selling a business. Familiarity with the process of selling a business, and what to expect, can help along the path to a successful sale of a business. Having proper guidance before beginning the selling process can also help.
It is important for business owners to keep in mind that even though they may be understandably enthusiastic about their business, that the potential of the business is not necessarily what buyers are willing to pay for. Additionally, potential buyers of a business may not be interested in the prior success of the business. Potential buyers may be more interested in the recent performance of the business, which is generally considered to encompass the previous 12 months. In addition, potential buyers may be focused on future viability and sustainability of the business. Though potential buyers may not be interested in fixing a struggling business, they may be interested in understanding how the business has grown over the years, as plans for future business growth can be based on the previous performance of the business.
Rather than starting their own business, buyers of a business are seeking to purchase a business that is already established. It is also worth noting that potential buyers are interested in the profitability of the business and not the revenue the business generates. When selling a business, it is important to be prepared to provide verifiable financial data. It is also necessary when selling a business to be honest about all aspects of the business and not try to hide anything what will likely be discovered anyway. The due diligence process reveals a considerable amount about any business and requires patience to thoroughly answer a number of different questions.
The processes of starting a business, building a business and selling a business can all require careful understanding of the practical and legal implications of each phase. Whenever a business owner is knowledgeable about the process of selling their business, they are in a better position to be prepared for the success of the next phase of their business.
Source: Entrepreneur, “6 Things You Must Know Before Selling Your Business,” Thomas Smale, Jan. 28, 2015