With an uncertain economy, many business owners may consider this the best time to sell their business. However, there are several other factors business owners should consider before trying to sell.
What To Consider Before Selling
A business owner shouldn’t rush into this decision but rather make sure the business is in a prime position for a potential buyer. This includes considering factors such as:
- What is the company worth?;
- Will the business continue to be successful without your ownership?; and,
- What do company stakeholders gain or lose if you were to sell?
As previously mentioned, the economy is another important factor to be considered before selling a business. In particular, business owners should look at the following:
- Local Economy — is there a demand for your type of business right now? Are there new developments in the same town that would bring more potential workers and customers to your area?
- Market Conditions — this is the area many business owners are focusing on right now as demand in many industries is low and many businesses are for sale. In turn, the buyers that are out there could be expecting to get a “deal” if they buy a business.
- Industry Trends — business owners should also review the company’s growth to see not only what the business will look like for a potential buyer but how it compares to other businesses in the same industry. If a potential buyer is looking for a business in a certain industry, a business owner will want to do everything in their power to showcase why theirs would be the best for acquisition.
Personal Factors to Consider Before Selling
Another significant consideration business owners need to evaluate is whether or not they are personally prepared to step away from their business. It is important for owners to self-reflect on what changes would happen in their professional and personal life if they were to sell their business. For some people, the thought of not having to run the business could be invigorating (this could especially be true for those who are interested in retiring). There are other business owners, though, who rely on having their business to get them through each day. A business owner should not consider selling their business if they feel like they would not enjoy their life away from the business.
What Chipman Mazzucco Emerson LLC Can Do To Help
If you are a business owner who is considering selling your business now or know that down the road it may be in your best interest to sell the business, then contact Chipman Mazzucco Emerson LLC. Our team of attorneys has helped business owners weigh all options and we can walk you through the best plan possible.