Frequently Asked Questions about selling a Business
Upon first glance, the idea of selling a company can often seem pretty intimidating and complex; especially if you don’t know much about what the process involves, or what you’ll need to do to successfully make a transaction that’s worth it. The confusion that you may have may deter you from going any further, but if you take just a little time, you’re likely to find that it can be easier than it seems.
To get a better idea of these types of sales and what they involve, be sure to take a look at some of the common questions that our experienced business transfer agents are asked.
How can I sell my company?
In most cases, if you do your research, you’ll find that there are a number ofsteps involved with these types of transactions. In general these are:
- Hire a team of experts to help you through the process (for example, you’ll need a solicitor and an accountant)
- Find the value of your establishment and decide on an asking price accordingly
- Putting it on the market for sale
- Take care of enquiries and viewings
- Negotiate with a potential buyer
- Finally, close the deal
You could handle it all yourself – although in most cases, it’s much better to hire the services of someone who knows what they’re doing to assist you through the process.
How can I prepare for the trade?
There are often a number of things that can be done before the transaction, such as:
- Gathering all the necessary documents ready for when prospective buyers want to look at them (this can include your profit and loss statement, list of assets, business plan, and more). A large part of preparation comes down to ensuring that all the necessary documents are to hand, to save time and avoid complications later on
- Does the final price include your stock and assets, if you’re selling them? While you’re not required to get rid of them, it’s certainly worth calculating their value if you do plan to trade everything
- Take the time to see if there are any issues that can be fixed, or if there are any small renovations that could increase the value of the company. Even something small like repainting walls and better organizing things can make a difference to buyers
Should I sell the firm and its assets?
In many cases (but not all), it’s up to you to decide whether or not you want to give up the equipment and/or stock of your organization – as there’s no obligation for you to get rid of everything. It is important to keep in mind that the sale price is likely to decrease if you don’t offer the assets along with it, so if you have no other use for these possessions it’s generally worthwhile to put it all on the market.
How long will it take?
While there’s no way to know for certain how long your business will be up for sale, there are some factors that can either make the process faster or slower. This can include your asking price, current market conditions, the establishment itself, and how prepared you are to sell. Generally, it takes between 3 and 12 months, although if you’re hoping to trade it as fast as possible, it often pays off to ensure that everything is as appealing as possible to potential buyers.
Is it worth it in the long run?
Depending on your situation and the current position your company is in, you might be unsure of whether this is the right move. While there are many factors that can determine whether or not it’s the right time to sell, only you can decide if you really want to.
Even if things are going well, it can still be wise to pull out under certain circumstances, if the decision is deemed to be a smart move by someone with experience (like a financial advisor). As a corporation’s value grows overtime, owners can become far more prone totaking risks that can lead to difficult situations. Trading and making a profit off ofyour hard work can be an excellent choice for this reason alone, but there are many more things that may lead someone to decide to sell.
Do I need the services of a professional?
From business transfer agents to experienced evaluators, there are many types of people who could assist you to get the most out of your sale and make the whole process simpler – so in most cases, it’s considered more than worth it.
Please note that the information provided on this page:
- Does not provide a complete or authoritative statement of the law;
- Does not constitute legal advice by Net Lawman;
- Does not create a contractual relationship;
- Does not form part of any other advice, whether paid or free.
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