There are a lot of companies in the world, some people works in those companies, and some of the people own these companies. When the company is on high demand, there are many people who appreciate the skills. But when on a certain point the company is going in loss, the owner suddenly plans to sell it to someone to avoid a huge amount of risk in shares. Well if we are selling a small business then also it is a complex venture that involves several considerations. It can also require that you are affiliated with a broker, accountant and/or you will also need an attorney when you proceed. But your profit will definitely depend on the reason of the sale, the timing of the sale, the strength of the business’s operation and its structure. It may vary those all circumstances before selling the company.
The business sale will also require as much as of your time, and once your business or company is sold, you will need to check out some smart ways to handle your profit. We are going to elaborate some of our five considerations that can might help you to build a solid plan and make negotiations for your success.
What is the Reasons for the Selling of your company or business.
You have decided to sell your business / company. But Why? That is one of the first question that a potential buyer will ask you. Owners mostly sell their businesses for any of the following reasons:
- Some business men wants to sell thier company because of the retirement issue.
- Some of them wants to sell their business because of partnership or shares issues. Maybe possible the partner is fighting for his shares in company.
- Some of them are going to sell their company because of their Illness or may be the person’s doctor told him or her that the person is about to die. So he / she will decide to either sell the business or else give it to some one else in the form of inheritance.
- Some of them sell it because they are becoming overworked and they want to take rest, and they are just fed up.
- Some times the person wants to sell the company because of boredom, and they want to do something new.
- Some of the owners wants to sell the business when it is not much profitable, but this reason can make it harder to attract the buyers.
There are also some other things that can make your business look more attractive, which are including such two options, given below:
1-) You can either increase the profits.
2-) You might keep a strong customer base service.
- What is the value of your business / company?
You will need to determine the worth of your business to make sure you dont price it too high or too much low. You will have to look for a business dealer, who can help you to raise your business values infront of the buyers. And the buyers dont feel like the price is not so reasonable for them according to the business structure.
- Selling the company by yourself OR Selling it via Broker.
If you are selling the business by yourself, it gives you the opportunity to save your money and avoids to pay the broker’s commission. It is also the best option when you are selling your company to a trusted family member or to your current employee.
When you are selling it through a broker, so he can help you to save up the time, and the broker will keep the sale quiet and get the highest price (because the broker wants to maximize his or her commission also).You have to let the broker know your expectations to maintain constant communication.
- Prepare the documemts before selling the company.
You will firstly have to keep all of your financial statements and tax returns, bills , records of previous three to four years and make sure to review them by an accountant. More over, you will have to make a list of the extra equipments that is also being sold with the company. Also, you will have to create a list of contacts related to sales transactions and supplies, and make up any relevant paperwork like as your current lease. Create some copies of these documents to distribute it to financially qualified buyers. Also, your information files should also provide a short summary that should be describing how the business is conducted or an up to date operating manual system. You will also have to make sure that the business looks quiet presentable. Any part of the company or any of its equipment that are broken should be fixed or replaced before to the sale.
- Find a potential buyer to sell the company.
Mostly selling of a company might take between six or seven months or maybe two years. If you are having a small company. So for finding the right buyer can be a big challenge for you. You should try not to limit out your advertising, by doing that you can get more buyers in your lists. Once you got a potential buyer, you will have to stay connected with the buyers. You have to check whether the buyer is able to pay you the desired amount for your company or not.
The Final Conclusion
Well there are also a lot of things, which you will have to keep in your mind before selling your company. For example if you are willing to sell a mobile phone company. And i am a person, i want to sell my note 8, sell my iPhone, sell my iPad 3, sell my 4×4 and sell my mobile to your company. I will sell my all gadgets, and you will make a high profit by buying these gadgets from me. After wards if you are not getting any buyer who buys these devices from you, then definitely you will lose in a high rate. Your profit will come low gradually. So in this case the person decides to sell his/ her company to avoid such loss.