As a rule, building a successful business takes hard work and careful planning. When it comes time to sell the business, the same efforts could prove rewarding. Before selling a business, however, a North Carolina entrepreneur should keep a few factors in mind.
For starters, it is a good idea for business owners to set a sale date based on certain factors. The best time to sell a business is when the economy is healthy, if the previous year was profitable for the business and if the company will likely be successful in the future. However, economic realities and personal considerations are generally more important than perfect market conditions.
The business owner may also want to figure out how much compensation he or she needs in order to leave the business and then set the selling price accordingly. However, the valuation of the business should not just be based on the owner’s opinion; it should be backed by an appraisal. While a business appraisal may be expensive, it is an investment that could pay off in the future through large dividends. A business appraiser is able to provide specific values on assets as well as help with valuing intangible assets.
Marketing the business is another key strategy to getting it sold. The business owner can start by advertising the sale to business owners in the local, regional and national business communities. There are also business brokers and acquisitions professionals whose services may help find a buyer.
Selling a business may be time consuming and involve complex legal issues that can be overlooked by the owner. However, with the guidance of an attorney, the transaction may go smoother. The attorney could also assist potential business owners with financing issues.