Making money is not the only reason an entrepreneur may want to sell a business. Some owners want to solidify their work and make the business and its employees a legacy for the future. Before doing so, however, North Carolina entrepreneurs who decide to sell their business should consider certain factors.
Having a well-developed plan and clear idea of what type of future the business should have must be decided before selling the business. Including the management team in the planning can increase the odds of achieving the desired outcome.
Dependable revenue is the most important part of establishing the value of a business. Growth should be the primary objective, even over profit, for at least three years before the business is to be sold.
Getting the right information from the right professionals is also a wise business move for all entrepreneurs. However, timing is important. A team of advisors, which may include investment bankers, wealth advisers and strategic planners, should be created many years in advance of a sale in order to make the process more seamless.
Taxes are another important consideration when selling a business. If sellers wait too long to determine how much of a tax liability will be generated when a business is sold, they will find that they may owe a significant amount of taxes. The right type of advisors, such as a certified public accountant, may suggest strategies that can mitigate taxes.
An attorney who practices business law may help an entrepreneur buy or sell a business. Objective legal counsel may be provided for certain business transactions, such as the valuation of business assets. The attorney could review purchase agreements to ensure that the interest and rights of clients are being protected.