Selling Your Company – Some Key Points
Selling a company is a large undertaking, and needs to be taken quite seriously in order to successfully sell the business and secure the price you are looking for. There are many factors to consider when preparing to sell your company, and it is likely you will need the help of some skilled professionals to guide you through the process, helping you to prepare the business accordingly.
Discussed below are some of the key points that should be carefully considered and looked after to ensure that you obtain the best price possible for the company, and the process moves along as efficiently and effectively as possible.
Obtain a Business Valuation
A proper business valuation is definitely worth the investment, as it will provide you as well as potential buyers with a clear indication as to exactly what the company’s value is.
A clear valuation of a company will provide much data as to a company’s financial standing, any assets and liabilities they may have, current marketplace conditions as well as any prospects for enhanced value. Many factors contribute to a business’s valuation including any patents the company owns, stock value, profits in the past and present, as well as projected for the future, and the ability for the business to be successfully owned and operated successfully by somebody else.
Having a proper business valuation done not only allows the owner to know exactly what their business is worth in a complete sense, and provides them the opportunity to determine exactly what they need to get out of the sale, but also allows potential buyers to feel confident they are looking at a viable business opportunity that will be a worthwhile investment.
Assemble a Team of Experts
It is impossible to navigate the sale of a company without professional guidance, so it is important to assemble a knowledgeable team of experts to ensure you get through the process unscathed. Be sure to align yourself with a good CPA to get all of the company’s financial information in order, as well as a reputable business broker who can assist in the buying selling. Your team should also include an experienced lawyer to handle the legal aspects of the transaction. Put your trust in reputable professionals and you will be able to minimise the stress and confusion that comes along with such a complicated process.
Work With a Business Transfer Agent
A business transfer agent or business broker is the most important person you will work with when it comes to the actual sale of your company. These are agents that work directly with buyers and sellers to help negotiate a deal, and have extensive knowledge as to how the market works and how to best approach a sale of this nature.
Have Asset Protections in Place
A consideration as to the value of a company is how well protected it’s assets are. Assets can be categorised as the business’s client base, physical equipment owned outright, as well as intellectual property, and when these are properly protected it will give the company a certain appeal and competitive edge in the mergers and acquisitions market.
Protecting assets is a process that begins with the assistance of a lawyer, as they will help you determinewhere the true value of a company lies, and proceed to assist in putting safeguards in place to protect that value. This can include applying for patents for the business’s key ideas or unique processes, registering the business’s trademark, and having management and other key employees sign restrictive agreements preventing them from working in direct competition with your business in the future.
Article supplied by Sovereign Business Transfer – specialist in selling businesses for their maximum value