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Mistakes to avoid when selling a company

On Behalf of | Mar 14, 2019 | Buying & Selling Businesses |

Some North Carolina business owners may think that conditions are right to sell their companies. While this may be true, avoiding mistakes is crucial to helping a business sell for at or above its current market value. One key mistake to avoid is failing to establish a chain of command for after the sale is completed. In other words, buyers want to see that the company will still be properly run after the founder exits.

Companies are generally more appealing to buyers when they can perform tasks in-house as opposed to outsourcing them. Therefore, it may be a good idea to hire an accountant to join the company on a full-time basis. It can also be a good idea to refrain from outsourcing the production of goods that the company sells.

When it comes time to negotiate a sale, business owners should avoid having a set price in mind. Instead, the sale should be structured in a manner that is enticing to all parties. In some cases, proceeds from the sale will need to be paid out over time to avoid tax issues. Spreading out the payment may also make it easier for a seller to get a loan.

Ideally, a seller will accommodate a buyer as much as possible over the course of the deal. This is because these types of business transactions may be complex or involve a variety of needs from multiple parties. A business owner may benefit from having an attorney who may be able to review the terms of a deal before it closes.