Small business owners play a big part in the local economies of many Louisiana cities and nationwide. Some small businesses are passed down through the family, generation after generation. Others are sold to up-and-coming entrepreneurs, who are interested in carrying on a successful business. In either situation, it is important for small business owners to know that they have options when it comes time to sell their business.
One way to sell a business is through an outright sale. In an outright sale, the ownership of the entire business is transferred to the buyer, in exchange for the agreed-upon price. This option may be attractive to those who want to quickly sell their business and see a profit from the sale.
Another way to sell a business is through a gradual sale. One feature of this choice is flexibility. The business can be transferred in a way that benefits all parties involved. For example, a person will be able to relinquish the day-to-day running of the business, but will still receive regular payments for the gradual sale to the other party. This option may be attractive to buyers who are not able to afford to buy the business all at once, as would be the case in an outright sale, but would be able to purchase the business via a long-term payment plan.
A third way to sell a business is through a lease agreement. Through this option, the business owner passes ownership of the business to another via a lease. A lease, in essence, is a contractual agreement that gives a person the temporary right to a business in exchange for regular payments to the business owner. The lease can also contain conditions on the business.
These are only three ways that a small business owner can choose to sell his or her business. The decision to sell a business is a big one and deserves careful thought. But, with the right help, small business owners in Louisiana can choose the exit strategy that is in their best interests.