It’s Business, And It’s Personal

Steps in selling a business

On Behalf of | Sep 12, 2016 | Buying & Selling Businesses |

North Carolina business owners may come to a point when they want to sell their company. There are a number of factors to consider when selling a business, and it is important to do so when it and the economy are doing well rather than when either are struggling. The process quite a bit of time, so owners should plan ahead for it.

The first step is to get an accurate value for the business. Owners have a tendency to overvalue their companies because they are thinking about the amount of work they put into it. A better choice is to bring in a business appraiser who can be helpful in valuing intangibles such as goodwill. It will then be necessary to find a buyer. Local business owners, regional owners and national businesses might all be potential buyers. There are also professionals such as business brokers who can help find a buyer.

Financing the sale is another consideration. It is important to structure the transaction in a way that protects the seller, especially if the seller will be taking back a promissory note for part of the purchase price. An agreement must be put together that covers a number of factors including the terms of the sale and any warranties that the seller is giving.

Buying or selling a business is a complex process, and a person doing either might want to work with an attorney throughout the process. An error in the process or in the sales agreement could lead to serious financial repercussions for either party, so it is important that the contract is drafted in a meticulous manner.