Imagine you’ve created a business from scratch, put all your energy and efforts and developed it through the time and now you need to decide if you want to sell it or not. This can be on the most difficult decisions of your life. If you’ve made the decision about selling your business, you will probably look for buyers who share the same values and work ethic with you and will and treat the business and the staff with the dignity that they deserve.
If you are keen on selling, whether you want to retire or would like to explore other career opportunities, you need to carefully consider several aspects relating to business readiness, market conditions and, of course, prospective buyers.
These seven businessmen offer several specific advice and best strategies for selling your business to not only guarantee that you receive the greatest price you can, but also that the enterprise ends up in the right hands.
Concentrate on the timing of market demand.
“I realised that I wished to sell my past companies when I felt that there have been possibilities and demand in other areas of higher interest and potential,” John Rampton, Calendar founder, shares.
After all, in order for the transaction to be effective, company owners ought to be certain it ‘s the best time to sell and test whether the price is good — otherwise, waiting may be easier. “It’s crucial to concentrate on timing with market demand for what you presently have and what you might want to give when you decide to sell,” explains Rampton.
Sell while you are having fun.
Timing and demand excluded, if you’d like to make a pleasant profit, it ’s essential to sell while the market is at its best. “Sell while you’re having a good time and still expanding,” says Kasey Kaplan, creator of KWK Studio & Quuie, adding that no entrepreneur’s justification to selling the business should be “because I have to.”
“I’ve been interested in the purchasing of many firms and if a business is out of money, has a decreasing share of the market and/or is no longer important, their odds of having a decent offer are very small,” Kaplan notes. “Try to build an exit for your business”
Hire a specialist.
“Trying to sell a company could be very tedious and time-consuming,” adds Vikas Agrawal, co-founder and CEO of Infobrandz, outlining that there are numerous liquidation standards, protocols and obligations to conform with when selling.
Founders can recruit a specialist like a corporate lawyer to manage all the legal issues and ensure the process operate seamlessly. “The recruiting of an expert can also let you determine the best sales price for your company. They’re armed with solid industry expertise, goodwill and legal processes,” Agrawal suggests.
Be transparent in everything
An important factor to bear in mind while selling is maintaining full consistency of procedures, reports, activities and all other company related matters. This will help create confidence among buyer and seller.
“Be completely straightforward and open about the company you offer, starting from the first meeting down to any bit of paperwork,” says Nicole Munoz, founder and CEO of Nicole Munoz Consultancy, Inc. “Purchasing may be as hard as selling, so getting a simple, open method is important.”
Don’t accept the initial bid.
According to co-founder Chris Christoff of MonsterInsights, company owners who are about to sell will seek to find more customers and more deals to negotiate rather than taking the first bid and “have things done ” faster.
“Don’t accept the initial offer, at least immediately. You’ll find that when you are selling your business there’s a lot people ready and willing to take over your company,” explains Christoff. Before taking a choice, the founders must invest some time investigating prospective customers and looking through their deals, he says.
Know the implications of the taxes.
“Many entrepreneurs do not carefully evaluate the tax implications of selling their business,” says Jordan Conrad, Writing Explained ‘s founder and publisher, stressing that the manner a sale is organized can carry a heavy price tag leading to higher tax liability.
“See if your accounting company has tax planning expertise or will refer you to one who does. Don’t let an unexpected tax bill strike you through bad planning,” Conrad suggests.
Don’t be emotive.
According to David Chen, a founder and board member at GTIF Capital, one aspect both entrepreneurs suffer with while selling their life’s work is allowing emotions to influence their judgement. Chen has been active with his customers in many deals, and now proposes two best practices for selling a company.
“Firstly, find a 3rd party source that can provide a valuation — it will offer you a true concept of what your company is worth,” says Chen. “Second, don’t get upset. Anger causes surprise. Note it’s a company and you’re trying to sell it.”