If you are one of the percentage of Baton Rouge residents to fully realize the "American Dream" and own your own business, congratulations. It takes a lot of perseverance and hard work to ensure that a business is successful and projecting even greater returns than years' previous. So, when it's time to retire or move onto the next venture, what are some things a business owner should think about? Selling a business is more about dollars and cents, for starters.
Timing is everything, as they say. Deciding when to sell may be even more important than what you decide to sell for. Timing can determine value in a way that no other aspect can. If a business is on the up-and-up it is going to extremely attractive to potential buyers. As a person can imagine, the process can potentially take a while, so planning for extra negotiation time can help you meet all deadlines pending the sale of your business.
Determining value of a business is key to ensuring that you understand what is a fair asking price. Without knowing the value, how will you know whether an offer is fair or not? There are many factors that go into this including valuation of assets, employees and projected value for the business given its current market placement. Competitors can also play a role in how a business is valued.
These are just a couple of things a business owner should consider during the sale of a business. Each business will have specific consideration like intellectual property concerns, employee retention and other specific issues that need be noticed. Who a person sells to can make the process easier or more challenging. For example, if a business owner is selling to a competitor, this could be a more emotionally charged environment than if a person was selling to a colleague or friend, and the selling process will likely be approached differently. With all these issues in mind, business owners may want to seek legal advice before proceeding on the sale of their business.
Source: FindLaw, "How and When to Sell a Business," Accessed July 31, 2017