The decision to sell a business can be very challenging. Determining a fair price and finding a quality new owner to take over operations is just the beginning. There are a multitude of complicated legal and financial decisions that need to be invested in the process to ensure the deal is fair for both parties. Planning ahead when selling your business is very important as it can save you a lot of money for your retirement.
How Should You Plan for Selling Your Business?
- Seek out a team of professionals: Unless you are well versed in local tax laws, business transaction laws, and an expert in business valuation, getting a business transaction attorney, accountant, and business broker will be necessary to avoid making huge sales errors that could greatly devalue the transaction.
- Plan your taxes: According to entrepreneur.com, mistakes made on the tax details alone could sacrifice 50 percent of sale proceeds.
- Buff out potential issues: Ask yourself if there are any deal breakers. Having misclassified employees or outdated operations could make your business less desired by buyers. You want a good lease on the building, clean and polished work area, reputable employees, and good finances to show your business is worth the sticker price.
- Hand over operations: You will likely need at least one staff member to efficiently run the business while you are negotiating sale deals. An operation manual that only exists in the owner’s head is not attractive to buyers.
Choosing the right buyer can be difficult, and it’s not always about the money. You want to sell to someone who believes in your operation that you trust to takeover. Quality buyers will want a great product that is free of potential legal implications. Contacting a New Jersey business transaction attorney will make sure your transaction is the best it can be and aligned with New Jersey laws.