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How to sell your small business

On Behalf of | Mar 15, 2022 | Business Law And Litigation |

Texas entrepreneurs establish businesses for different reasons. Some have intentions of keeping the operation going for an unforeseen time into the future, and others build it specifically with the intention of selling at some point after it has accrued significant value. Additionally, even those who want to keep the operation going sometimes come to a situation where selling makes good business sense. Regardless of the scenario, the process is much the same, and there are some basic steps they will need to take to receive an optimum price when the sale finally occurs.

Have the business professionally appraised

The value of a business can be a highly debated topic. Not surprisingly, the purchaser wants a lower value, and the owner/seller wants a higher value. One method of reaching an equilibrium and accurate value determination is by locating a business law or valuation professional and letting them conduct a full inventory of assets and liabilities. The ultimate valuation may also take into account future cash flow potential in some instances.

Finding a buyer

While many business owners will want to handle a sale personally, those who are serious about selling at an optimum price may want to retain a sales broker. Business sales brokers are professionally trained representatives who can find the best client with the most dependable financial capacity to actually complete the transaction. While having a sales broker is an additional cost, the inclusion of a sales broker can enhance the value with respect to reducing a potential buyer’s leverage in attempting to negotiate a lower price. A business sales professional can even sometimes add value that an owner may not realize.

These are just the first two basic steps that any business owner must consider before selling. Most owners put extensive energy and financial investment into their operation, and it is important to get the most out of the prior work when it comes time to sell.