It’s Business, And It’s Personal

The key steps to follow when selling a business

On Behalf of | Oct 2, 2019 | Buying & Selling Businesses |

Financial issues or a lack of interest in being a business owner may be valid reasons to sell a company. However, it is important for North Carolina owners to create an exit strategy long before they want to leave their companies. The first step in selling a business is determining how much it is worth. Usually, companies will sell for a multiple of its annual cash flow, and it is not unusual for a professional to help appraise an organization.

The next step is to prepare for the sale itself, and this could mean getting rid of employees, selling inventory or otherwise making the company more attractive to buyers. Once the business is ready to be sold, it is time to consider who the right buyer is and who will help facilitate the transaction.

If a company is going to be sold to a family member or trusted associate, it may not be necessary to hire a broker to help with the sale. However, if the company is to be sold to an unknown person or company, it may be best to have a professional help with the process. It is important to note that brokers will likely charge a commission expressed as a percentage of the final sale price for their services.

Selling a business will ideally be done in a controlled manner. An attorney may be able to help business owners both create and execute an exit strategy. This may make it easier to establish an appropriate sale price, find the right buyer and close on the deal in a timely manner.