Questions You Need to Ask Before You Sell Your Dallas, TX Business | Kirksey Business Brokers
Selling off your business should not be hasty decision. Even if you have decided to sell your business, make sure you make an informed decision and know what you are doing. There are a number of things you must consider before selling your business. In addition to the actual worth of your business and the benefit you will gain with the deal, it is important figure out the following factors:
- Why do you need to sell the business?
- Is it the best time to sell the business?
- Is this the actual worth of my business?
- Is the benefit I am gaining today worth it in the long run?
These are only a few things you must consider before you sell your business among many others. And this is what you will learn about here. The following are 5 important questions you need to ask before putting the ‘on sale’ tag on your business.
Q1. Am I Ready to Sell My Business?
It should be more like ‘Is my business really ready to be sold?’ Some experts suggest taking at least 2 years of preparation time before making any final decision about selling your business. However, this does not count in the total number of years of business operation. The maximum preparation time you have in hand will ensure you have accurate books of accounts and tax returns – clearly showing the figure for profitability. All these calculations and figures are important for determining the worth and price for your business.
There’s no way you can decide in a matter of months just by putting things together. The more information you have in hand, the more close you will be to your answer whether you should sell your business or not.
Q2. How Should I Find Out If This Is The Right Time to Sell My Business?
If you want to sell your business, it is highly important that you find out if it is worth it to sell it now. Most people decide to sell their business when it begins to decline thinking it’s the perfect time to get rid of it. This is the wrong approach. In fact, you should follow exactly the opposite strategy when you want to sell your business. If you want to sell your business, wait until it’s at its peak. That’s when you will end up getting the best deal and maximum profit for acquisition since the value of your business will be much higher at this point.
Some may argue saying that it’s the wrong time for selling becaue the business is making good money. While that’s true, it is the time where you need to calm down the entrepreneur in you and think like a business owner. Wait until you reach the top of your game to get the valuation done for the best deal possible!
Q3. Is It the Right Market for Selling My Business?
It is important to pay attention the the market conditions when you want to sell your business. It depends on the type of business you operate and the current trends in your particular market will help you make a better decision. Back in 2006, selling businesses that dealt in home inspection and home improvement did pretty good in the market. The returns were impressive and business owners showed great satisfaction from the market. A few years later, home financing, siding, roofing and companies that deal with other home improving jobs lost a huge chunk of their value – just because the market condition was not favorable at that point.
In order to determine if it’s the right market, focus on the market conditions. If it does not seem like the right time, wait until it gets better.
Q4. Can I Experience a Deal Breaker? How to Deal with It?
If you end up in issues that remain unresolved can actually lead to deal breaking situations. Such situations can interfere with the sale big time and can make things look ugly. These issues often occur in areas related to intellectual property rights, accounting, and company ownership. Even if you have decided to sell your business, things may delay if issues remain unresolved.
For instance, a business owner may transfer rights of using the software to another individual but do not assign those rights to the company. This does not clarify the situation much and leaves a question mark as to who actually possess the rights. In order to proceed with a smooth deal, the best way to avoid deal breakers when you sell your business is to calculate them beforehand. Make sure these issues are resolved in time before the deal is finalized.
Q5. Do I Need to Seek Help From Professionals for Valuing My Business Before I Sell It?
You may need a team to make sure the deal goes smooth for you. You don’t want hindrance and delays when you want to sell your business for a good number of reasons. And having professionals by your side can really help you avoid all that unwanted nuisance. However, it is important to figure our the type of services you will be needing to close the deal successfully and at a great price.
Are you looking for an accountant or do you need an attorney, appraiser, business broker, or a consultant in the team? It is important to have a strong team to deal with the team that the buyer’s going to come with. They are typically going to be loaded too so you don’t want to fall short at the last minute and lose a good value for your business. Consider these factors and hire professionals to help you with a smooth, lucrative deal.
If you are looking for professional assistance to help you sell your business, contact us now and let us seal the deal for you!