When you first started your Connecticut business, you may have had many nights where you stayed up late in an effort to complete tasks or worrying that your venture was not going to make it. Now, years have passed, and you have grown your business into a successful enterprise.
Though you feel proud of your company, you may also feel that the time has come to sell the business. You may have reached an age where you wish to retire, or you may simply feel ready to pass your business on to someone else while you start a new adventure. Whatever the reason, you need to make sure that selling your company is the right decision.
Think it through
As a successful businessperson, you likely already know the importance of thinking through any decision that could have major impacts on your company. Therefore, you undoubtedly want to make sure you consider the pros and cons of selling your business and how to handle the repercussions of the sale. Some factors to consider include the following:
- Your employees: Selling your business means that your employees face certain risks, including potential layoffs. You may want to work toward providing job security for your employees, or possibly even consider selling to one of your workers who has intimate knowledge of the company and a desire to keep it operating successfully.
- Business assets: You may also want to determine whether selling your business assets separately rather than as a whole could better benefit your situation. This consideration may be especially important when it comes to intellectual property.
- Selling price: When determining the selling price of your business, you need to look at current business assets, annual earnings and the potential for growth. It is also wise to take tax implications into account.
- Agreements: Do you want to stay on as a business consultant or continue to have some other role in the company after selling it? You may want to create an agreement with the buyers that include terms that would allow for your continued participation in the company.
Depending on the exact nature of your business, your reasons for selling and various other factors, you may need to take other subjects into consideration as well.
Selling is a company is a major business move. Because many legal factors go into such a transaction, you will undoubtedly want to make sure that you have the right legal assistance throughout the process. Consulting with your attorney can help you come to the right terms, find the right selling price and create any needed agreements.