Once your business starts to reach a high level of profitability, you might consider selling it while the iron is hot. Or, if you think that the situation is poor and isn’t going to improve, you could sell it to cut your losses. Either way, there are a lot of factors to consider before you put your business up for sale. You need to think about how to get the best price, when to sell it and how it will affect your workers. These issues can make selling a business quite complex.
Let’s start by thinking about how to put your business up for sale.
Contact A Business Broker
We recommend that you start by speaking to a business broker. They will be able to help you get your business on the market. They might tell you what you need to do to get your company ready for sale. They may also advise you on how you can make it a more attractive purchase. Business brokers will also liaise with people who might be interested in purchasing your company. Their job is to get you the best deal possible from an interested buyer. Using a business broker makes selling your company a lot easier to handle and avoids the pressure of the situation.
Prepare Your Company For Sale
Before your business goes on the market, you need to get your company ready for sale. You may want to start by looking at your books and making sure that your finances are in order. If there are any issues with your business finances, this will make your company a more difficult sale. You should think about the assets of your business as well. Consider selling your business like selling a property on the housing market. It’s not so much about what it is as what it appears to be. If your business appears to be a modern company with plenty of potential, it’s going to fetch a good price.
Think About Your Employers
You are tired down to certain restrictions when you sell your company. If your business is sold, your worker’s jobs may be protected by TUPE. This stands for transfer of undertakings regulations. You need to understand this before the keys are handed off to someone else. Essentially, you can’t tell them they are free to clean house when they aren’t. They may be required by law to keep the people on who are already working for you. Buyers of companies may be aware of this and therefore will be looking for companies with the best employees. That’s why it is important to manage your staff effectively. Don’t leave poor workers in high positions for too long.
Make Your Business More Attractive
Finally, there are plenty of different ways you can make your company a more attractive sale. One possibility is to agree to stay on as an advisor for the new business owner. By doing this, you will reassure the owner that they’ll have some support. This makes the transfer of ownership a lot easier to handle and your business more attractive to potential buyers.