Deciding to sell your business can be a difficult decision. Once you resolve to sell, you will need to do some planning and preparation for a successful sale. Below are some aspects that you should consider before and during the process of selling your company.
Sale price of comparable companies
How much has a business similar to yours sold for? It is often good to compare your company to a recently sold business that is in the same industry. Do not forget to take into account any differences between your business and the one you’re comparing it to, since certain characteristics and added services may affect value.
Value of tangible and intangible business assets
Assess the value of both the tangible assets owned by your company, as well as the intangible ones. Tangible assets include items such as furniture, equipment, and physical inventory. If you do not know how much your tangible assets are worth, an appraiser can help you value them accordingly. Examples of intangible assets that your company may own are the business name, patents, copyrights, customer lists and the goodwill associated with an operational business.
Market demand and type of buyer
If other businesses similar to yours are also currently for sale, there may not be a plethora of interested buyers waiting to make you an offer. If there are interested buyers, you will want to find out what type of buyers they are, so that you can capitalize on their needs. If a buyer wants to purchase your company in order to expand his current business, expenses such as bookkeeping may not increase much when he adds an additional store. For buyers who are purchasing your company in order to earn a living, they may need to be informed that the cash flow you have been operating at will allow them to take home a sufficient salary. When selling a business, it is imperative that you know the prospective buyer’s needs.
If you are interested in buying or selling a business and are interested in speaking with a team of attorneys experienced in commercial and business litigation, Kelley & Fulton would be happy to meet. Allow us to guide your buy or sale with the utmost success. We invite you to set up an initial consultation with a knowledgeable corporate attorney in West Palm Beach.