7 Things to do Before You Sell Your Business in Southlake
You started a business some years earlier in Southlake, built it from the scratch and now you are asking yourself ‘How would I sell my business in Southlake?’ There could be various motivations behind selling your business. Maybe you want to invest your money in some other business, or want to put the capital gain in a tax-free mutual fund and spend the rest of your life care-free? Whatever it is that you are trying to do, we advise you to think again about your decision because selling a business is like selling all future cash flows that you would have otherwise realized.
If you have taken the decision and think you’ll be better off selling the business, so be it. Here we’ve listed 7 things that every businessperson should do before selling his business in Southlake. Read it and get ready to rake in some crazy amounts of moolah.
1. Hire an Auditor for the Valuation of Your Business
If you think that it is time to sell my business in Southlake, you should know what the true value of your business is, chances are that you are wrong about it. That’s because it is a complex method where the qualitative things such as goodwill are also quantified.
Aha! Your devilish little mind, that’s always thinking of cutting business expenses, would think of verifying all the record yourself rather than paying huge sums of money to the auditor. Well, unfortunately, in this world of super capitalism phishing for phools is not that easy. Every buyer of the business would expect that you would present your business books that are vetted by some recognized auditor. Apart from this, the buyer of the business would also diligently look at the accounting records to see whether the books of the business are cooked from the inside.
2. Timing Kiddo, It’s All about Timing
Many entrepreneurs live in a fool’s paradise believing that they should not sell their business when it’s profitable. That’s the biggest mistake. When your business is growing, everyone in the market would know and thus they would even be ready to pay a premium on the fair value of your business but when the trend starts to reverse itself, every person would know about it. It’s a small world after all. Thus, if at that point you try to sell your business, nobody would be ready to pay the fair price and you’ll find buyers bidding for your business at a discounted price. So, every businessperson should keep asking themselves two questions, ‘Has my business reached its pinnacle?’ and ‘Is it the right time to sell my business in Southlake?’
3. Deleveraging Your Business Makes it More Attractive to Buyers
As we all know from our MBA classes that according to Mr. Modigliani and Miller, debt magnifies the profitability of a business but it also magnifies losses too. The businesses that are in the growth phase gears up as it greatly enhances their profits and make their income statement strong. However, when you present your financial statements to an interested buyer, he will not be interested in buying a business that’s too much leveraged, no matter how promising the growth is. So, before you call a broker and say ‘Sell my business in Southlake’, you should aim at deleveraging it.
4. Avail the Services of a Broker
If you are a business worth more than a million dollar, then every investment bank on the Wall Street or Canary Wharf would like to be your broker. This is because they charge hefty fees to their clients for their brokering services. Apart from these investment banks, there also other business brokers that can help you in finding an interested buyer that would be willing to pay the fair price that you are demanding for your business. So, rather than looking for buyers yourself you should call a broker and tell him that you are interested in selling my business in Southlake.
5. Manage the Risk of Transition
When a business is being sold, so is its whole workforce. In fact, if your workforce is well trained, the buyer will be willing to pay a premium in order to save himself from the cost of hiring trained personnel again. But, there is always a transition risk involved in such business deals that can result in a fiasco. That’s because when the leadership and the senior management of an organization changes, so do its culture. Most employees would leave if they feel that they won’t adapt to the new culture thus, a lot of trust-building measures and activities need to be undertaken to retain the trained workforce. So as a businessperson, you should ask yourself ‘What risks would be faced by the company after I sell my business in Southlake?’ And then you should try to manage and minimize those risks.
6. Hire a Battalion of Tax Lawyers
Most probably, things will go as you’ve planned, and you’ll be a millionaire or even a billionaire after the deal is implemented and the sale is completed. But hey, wait a minute, you are forgetting something very important. The Internal Revenue Service (IRS) will approach you and claim its share. This is why you should, before you finalize the deal, hire qualified tax consultants and should avail the tax planning services so that you can legally reduce tax payment and improve your profitability.
7. Keep In Mind that the Whole Process Can Take Up to a Month
Patience is what differentiates a businessperson from an ordinary person. When you are planning to sell your business, remember that you do not have to hurry. It’s just like selling a real estate. The more you reveal that you are in a hurry, more are the chances that you’ll end up with a raw deal. So be patient, new opportunities will come again but there is no point in selling a growing business at a discounted price.
‘How would I sell my business in Southlake?’ If this question was not letting you sleep like a baby at night, then we hope that now you’ve gotten all the answers. Keep all the aforementioned things in mind and approach your consultants and tax lawyers to begin the process of selling your business in Southlake.