Tips for selling a small business

Tips for selling a small business

On Behalf of | Sep 15, 2020 | Business & Corporate Law |

A desire to retire, boredom or disputes with business partners may motivate you to put your North Carolina company on the market. Ideally, you will start preparing to sell your business a year or two before you actually begin taking offers from interested buyers. This may make it easier to sell the company at the top of its price range and in a timely manner.

How to prepare your company for sale

The first thing that you will want to do is organize financial and other records that buyers will want to see when evaluating your business. It’s also a good idea to improve or refine the company’s processes in an effort to make it more profitable and attractive to a future owner. You can make your company more attractive to suitors by highlighting the organization’s customer base or its recent revenue growth.

Tips for maximizing your company’s sale price

Hiring a broker may make it easier to get the highest price for your small business because it will allow you to focus on running and improving your company. Furthermore, the broker works on commission, which means that this person will be motivated to get as much as possible from a buyer. In addition to hiring a broker, be sure to have your company appraised during the early stages of the sale process. This will help you understand how much the company is worth and what a buyer may be willing to pay to acquire it.

If you are seriously considering selling your small business, it may be a good idea to work with an attorney who can help with corporate formations, transactions and disputes. Legal counsel may facilitate the due diligence process or review a purchase offer to determine if its terms are adequate.