Selling a company is a major decision that requires a lot of thought. Even if you think you have considered all of the implications, you might still be ignoring a few important questions.
If you’re selling a business in Florida or any other part of the country, make sure that you ask yourself these 10 important questions before you make any final decisions.
Am I okay to go through with the sale?
You may be sure about outcome of selling your business, but not as informed as you should be around everything involved in the sale.
If you can’t answer this question with 100% certainty, perhaps you should seek helpful advice to fully understand the range of implications around selling your business.
Am I leaving the company in good standing?
This question might not sway your decision to sell one way or another, but it’s still important to give serious thought to.
You’ll probably be happy with your company at the time of your departure, but the way your business continues operating can swiftly change depending on how the company has been managed.
Who is the ideal buyer to sell my business to?
Finding out a buyer profile that would be a fit to buy your business is not always easy to assume. The goal should always be to generate multiple offers and have the knowledge to select the best one.
This might take a bit more than just asking “who is the ideal buyer to sell my business to?” but it’s a good starting point.
Will I be financially secure once I sell my business?
If you don’t have a solid financial plan for after you sell the business, you might want to hold off for a little bit. A few visits with a knowledgeable financial planner might make a huge difference in the long run.
Have I talked to my family about my decision?
According to a 2014 survey of business owners, only 32% of business owners discussed their decision to exit their companies with their spouse or other family members. Additionally, only 13% had spoken with an attorney about their plans to sell.
Your family absolutely needs to be a part of this major decision — so you should talk to them about it.
Will my family be financially secure for the future?
Selling the business will provide you with a large amount of cash. However, you need to ensure your lifestyle is sustainable. It’s in the best interest of you and your loved ones to figure out how you will be financially sustained once you sell.
How will I spend all my free time?
You should really think about what you’re going to be doing once you don’t have a company to run anymore. According to The Institute of Economic Affairs, retirement increases the probability of suffering from clinical depression by about 40 per cent.
It is critical that you begin brainstorming about some hobbies or plan a long trip as a reward for selling your business. Then, think about a plan that will keep you active throughout a long period afterward.
How much should I sell my business for?
You’re going to need to have a clear idea of how much you should sell your business for, before you even begin receiving offers. Consult with a business valuation specialist to end a fair market price taking all issues surrounding your business into consideration.
Is now really a good time to be selling?
When you’re discussing your plans to sell with your business advisor, make sure you determine whether or not the market is right for your sale. Every industry goes through ebbs and flows, not only as they relate to sales but specifically with regard to selling a particular type of business.
Does selling your business feel right?
It is important to fully understand the emotional impact that selling your business might have. At the same time, our emotions should be informed by solid data. If after looking into all of these, the idea of selling does feel right, go for it and don’t look back.
If you’re unsure of your answer to any of these questions, or just want to learn more about everything involved in the acquisition process, contact Aberdeen Advisors today.