Before agreeing to sell your business, there are certain things you need to take into consideration. If you don't carefully assess a number of factors, then you may wind up feeling financially cheated when the matter is finalized. We hope that this post will help provide some guidance with regard to those considerations, but if you are seeking legal assistance, then you need to think about contacting an experienced business law attorney.
One of the first questions you need to answer is why you are looking to sell your business. Depending on your reasons, it may be wise to hold off on selling your business until it is more appealing to potential buyers. A downturn in the market, the expiration of a long-term contract, and even a decline in a business's physical structure can all dissuade would-be buyers and lead to a decreased selling price or no sale at all.
One you've taken these matters into consideration and obtained an accurate valuation of your business, then you need to think about whether you want to try to sell your business on your own or through a broker. While selling a business on your own can save you a commission fee, it can also eat into your time and ability to adequately run the business while it is still yours. Additionally, a broker may have a wider network of potential buyers that may be interested in the business.
Once potential buyers are identified, you should be sure to leave room to negotiate. It's usually also helpful to determine whether the potential buyer is pre-qualified for financing. During this negotiation process, certain legal issues may arise, such as non-compete agreements, security agreements, liens, and, of course, the bill of sale itself. To ensure that these matters are appropriately handled it is best to work closely with a legal professional of your choosing.