It’s Business, And It’s Personal

Tips for creating and exiting a startup

On Behalf of | Dec 18, 2019 | Buying & Selling Businesses |

Entrepreneurs in North Carolina may choose to start their companies because they have an idea that they think could make a lot of money. At some point, a business owner may choose to sell his or her company to lock in profits earned over the course of many years. Alternatively, business owners may choose to take their companies public in an effort to obtain liquidity.

It can take as long as a decade for a business to become attractive or large enough to sell or to take public. The first step in selling a company is to figure out who the right buyer could be. In many cases, a buyer will be another business that is in direct or indirect competition with a startup. Ideally, startup business owners will determine who their potential competitors are before their companies begin operations.

It is important to understand what an acceptable offer looks like. Furthermore, startup founders should determine what made other companies in their industry attractive to buyers. For instance, they should know how much revenue these businesses were generating or how fast they were growing when they were acquired. This can make it easier for a business to set tangible goals on the journey to being acquired at some point in the future.

Those who are interested in selling their businesses may want to hire legal counsel to help with the transaction. Typically, business transactions are complex events that require input from many different parties. An attorney may be able to coordinate the activities of those individuals or resolve any issues that arise during the sale process. If a serious purchase offer is made, a legal representative may be able to review the deal to determine if it is in a seller’s best interest to accept it.