What Should I Consider When Selling a Small or Mid-Sized Business?
At some point or another, most small and medium-sized business owners will be faced with an important question: “Should I sell my company?”
In a perfect world, selling would be as easy as slapping a “for sale” sign up on the door and calling it a day. Unfortunately, it takes much more work than this. As an owner, here are some things to consider:
Timing. Whether you’re looking to retire, you’re getting tired of the business, or you’re having partnership disputes, these factors can all influence how long you’re willing to wait for the right time to sell. Even though you might be emotionally ready, it might be better to wait until your company is in a position to make an attractive deal. If your price is too high, no one will want to want to buy. If your price is too low, you’ll not only miss out on extra money, you’ll also lose potential buyers who may not take your company seriously. Know your company’s value before you put it on the market, and consult an advisor to address the areas of your business that could improve over time and get you a better deal.
Hiring a broker. Owners often specialize in their business’ field, or in running a business in general. This is quite different from buying or selling a company, so it’s often better to bring in a third party. Hiring brokers will also likely get you the best sale price – not only because they’re the experts, but they’re going to want to make the largest commission they can.
Organization. Being organized is going to help you tremendously when you begin the process of selling your business. You don’t want to be scrambling for documents at the last minute when your buyer inevitably asks for additional paperwork.
Patience. All in all, you can sell your business on your own or with help, but the most important factor is patience. Your business is important to you, so wait until “the stars align” to make the right move.
If you think you might be ready to take the plunge, you can confidentially discuss your business’ needs with any of Topline’s experienced advisors. Feel free to reach out to us at firstname.lastname@example.org for a complimentary consultation.