Owning a company can be one of the greatest things in a person’s business career.
Being able to call the shots, having your own schedule and seeing a possible lucrative career. Yes, they are but a few of the positives.
Now, what if you’ve owned a company for a while and you decide it is time to move along to something else?
If the notion of sell my company enters your head, how best to go about doing so?
Will You Get what You Want for Your Business?
In leaning towards putting all you’ve worked for up for sale, here are some areas to focus in on:
1. Knowing what your business is worth – It is critical that you have a good sense of what your business is worth. With that in mind, take the time to get a good assessment of what you could expect to get for your company. You can work with professionals doing such a thing for a living. They are not biased and can give you an honest idea of what your company is valued at. Make sure you provide them with all necessary financial info so they can do their jobs.
2. Is outstanding debt going to be an issue? – In coming up with your financials for a potential sale, make sure you know about any outstanding debt. The last thing you want is for such debt to potentially get in the way of a proposed sale. So, look to see if you have any notable credit card debt tied to your business. You also want to be sure that you have paid your taxes over time. Any outstanding tax bills could complicate things if you are not careful. By knowing what debt you have and the role it could play in a sale, you are in a better position to avoid any land mines.
3. Do you have employees in the mix – You also want to be cognizant of any employees than can end up in the mix. So, if looking to sell a company and you have workers in play, what is likely going to happen to them with a sale? Will they have an opportunity to go work for the one buying the company? If you look to start a new business, would you think about offering work to the people you have now? The best thing to do is give employees as much notice as possible of a pending sale. This way they have some options to what their business futures may hold.
4. Could retirement enter into the picture? – Depending on your age and place in life with health and money, you could be eyeing retirement. That being a possibility, you want to be sure you have the financial needs met to walk away from a regular paycheck. The hope is you have been preparing for retirement for many years now. There is always the possibility you could work part-time and/or do some consulting work.
If you are thinking of parting ways with your company, are you excited about the prospects?