Empower Your Next Chapter: How to Sell Your Business Wisely
Selling your business is more than transactional — it’s transitional. After years of hard work building a successful business, letting go and moving to the next life phase can be difficult. For that reason, it’s important to make the process as problem-free as humanly possible.
A successful sale of your business hinges on a few simple approaches: setting goals, forming a plan, and having a support team in place. In this post, we’ll chart a pathway for selling your business that benefits both you and potential buyers. We’ll also provide a few resources for navigating both the sale and your future.
Defining Your Goals — Understanding What You Want From the Sale
The first step in selling your business is getting clear on your post-ownership goals. Perhaps you want to remain involved with the company in some capacity as a consultant or board member. Or maybe you want a total break to pursue new goals or retire.
You should also have an idea of what your financial needs will be after the sale. Are you heading straight to retirement, or do you have other projects you want to invest in? Think about how you plan to live your chosen lifestyle after your primary source of income changes.
It’s good to have a ballpark estimate of your business’s value at this stage. A business broker can help you find this out. You can also use online tools like Sunbelt Business Brokers’ business valuation calculator to set a baseline value.
Choosing the Right Selling Method: Private Sale vs. Broker Assistance
The method you choose for selling your business can have a big impact on the final outcome of the transaction. You generally have two options: selling the business on your own or getting external assistance.
By selling privately, you’ll avoid commission fees and have complete control and oversight over the sale. That can also be a drawback, though. Selling your business entails managing legal and marketing matters and having clarity on your finances. You’ll also be on the hook for vetting potential buyers and final negotiations.
Business brokers typically have streamlined processes for selling companies. They have networks of buyers and sellers that could be helpful in finding potential suitors. Their experience with past deal structures and valuation can facilitate faster closings at better sale prices.
Managing Post-Sale Planning: What to Do After the Deal Closes
Your life won’t stop the minute you reach the finish line of your business sale. In addition to adjusting to your new daily reality, you’ll have some practical concerns to contend with.
Financially, you’ll have to focus on your investments and tax implications — especially if you’re moving on to a new venture. You’ll also have to close or transfer your business banking accounts and other assets related to your business.
Planning your future is equally important as managing the sale of your business. Getting clear on your objectives after the transaction can make the switch much less stressful. A solid business broker can help you craft your future plans so you can comfortably live the life you want.
Selling Your Business With Sunbelt Business Brokers
Sunbelt Business Brokers has helped hundreds of small to medium-sized businesses find qualified buyers and land favorable terms. We have years of experience navigating the markets, financing, and tax implications of business sales. Our advisors have strong track records of closing deals that are advantageous to all parties.
To learn more, contact one of our brokers online.