7 Steps To Selling Your Small Business

May 12th, 2016

Are you planning to sell your business? If yes, you need to ensure that everything is everything is in place for you to sell the business at the right price. If you are considering selling your business it is best to start preparing for it at an early stage and at least a few months before the intended date.

In general there are two ways of selling a business or company. The first is to sell the shares in a company. The second is to sell the business as a going concern which includes the assets and goodwill of the business.

When selling your business, you want to ensure that they get maximum value for the business, which is payable as soon as possible and with minimum ongoing liabilities including warranties or indemnities. It is a good strategy to review the financial, legal and commercial aspects of your business prior to sale in order to maximise the value of your business and reduce the risk of any ongoing liabilities and to ensure everything is in order and fit for sale.

It is best to tie up these loose ends well in advance of putting the business on the market because if a prospective purchaser identifies that there are risks associated with the sale such as very few formal contracts with customers or the threat of and/ or any ongoing litigation then the buyer will try to negotiate a lower price.

Read this article to learn more about selling a business: http://www.investopedia.com/articles/pf/08/sell-small-business.asp

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